Born on August 30th, 1930, Warren Edward Buffet is a famous investor and altruist from Omaha, Nebraska, as well as the CEO of Berkshire Hathaway. Originally this company was a textile manufacturing enterprise that Mr. Buffet bought and as far as revenue is concerned, is the world’s third-largest holding company and the ninth largest global conglomerate.
The net worth of this business magnate, who by the way started investing at the very early age of 7, was estimated at almost US$88 billion in February 2018 and therefore making Warren Buffet currently the wealthiest person around. He is the alumni of the Wharton Business school at the University of Pennsylvania, and a graduate from both the University of Nebraska and Columbia Business School.
What is Value Investing?
Benjamin Graham, recognized as the “father of Value Investing”, was Buffet’s idol and mentor. Value investing is the type of investing that Buffet also uses as his methodology for success. Graham believed that investors in stocks are not right or wrong because of others agreeing or disagreeing with them, but because the analysis and facts regarding that stock are accurate and correct.
A Value Investor is someone who buys securities, which seem to be under-priced, by using a fundamental analysis formula. For example, a stock in a public company that is trading at a discount to its actual book value and has a high dividend is a type of valuable stock.
Warren Buffet who enjoys eating at McDonald’s and drinking tons of Coca-Cola, has been named the “Oracle of Omaha” and sometimes the “Wizard” due to his unique financial strategy and investment methodology and although he is a frugal man, he has given away a lot of his wealth to many organizations throughout the years.
Buffet has been running his company Berkshire Hathaway since 1970 and is an avid reader, as well as a great bridge player and well-known philanthropist.