Warren Buffett

 Warren Buffett

 

 successful investor from America and the largest shareholder and CEO of Berkshire Hathaway. He was  born August 30, 1930,he is ranked as the second richest man in the world by Forbes with an estimated net worth of 37 billion dollars.Work began since childhood and had been working and is studying at the same time, he was selling Coca-Cola and some chewing gum, magazines and daily newspapers even finished his studies at the school, and he entered college as a freshman in 1947 at the Wharton Business School of the University of Pennsylvania and studied there for two yearsfrom 1947 to 1949.

In 1956, Buffett established his first investment partnership called Buffett Associates, Ltd. This partnership was financed by $100 from Buffett and $105,000 from seven other partners which comprised Buffett's family and friends. He created many other partnerships which later amalgamated as Buffett Partnership Limited. He ran his partnership in accordance to Graham's investment approach and compensation structure. These investments made in excess of 30% compounded annually, whereas in the market 7% to 11% was the norm. He applied a three-pronged approach:

Generals: depreciated securities which possess margin of safety and meet expected return-to-risk characteristics that concentrate on the ratio of "Return versus Risk" (RTR).

Arbitrages: company events which are not linked to broader market changes, like mergers, acquisitions, liquidation, etc. Controls: build sizable holdings, friendly with other shareholders or employ procurators to affect changes in companies.

In 1962, Buffett became a millionaire because of his partnerships, which in January 1962 had an excess of $7,178,500, of which over $1,025,000 belonged to Buffett. Buffett Partnerships bought shares of Berkshire Hathaway, a large manufacturing company in the declining textile industry, selling its shares below its working capital. Buffett dissolved all his partnerships to concentrate on running the Berkshire Hathaway. During that time, Berkshire's Vice Chairman, Charlie Munger mentioned that buying the company was a big mistake. But Buffett redirected the company's excess cash to gain private businesses and stocks of public companies, thus making Berkshire one of the largest holding companies in the world. At the core of his strategy were the insurance companies to pay future claims as they had large cash reserves. Along with his friend and business partner Charlie Munger, Buffett's investment approach drifted away from the Graham's principles to high-quality businesses with enduring competitive advantages.

In 1988, he started purchasing stocks in the Coca Cola company and eventually bought up to 7% of the company for $1.02 billion. This was considered to be one of Berkshire's most lucrative investments. In 2002, he enrolled in $11 billion worth of forward contracts to deliver US dollars against other currencies. By April 2006, Buffett's total profit on these contracts was over $2 billion.In 2009, after donating billions of dollars to charity, Buffett was ranked as the second richest man in the United States with a net worth of US$37 billion with only Bill Gates ranked higher than Buffett. His net worth is up to $47 billion in the past 12 months.

Warren Buffett has made some $50 billion doing things his own way, so it was completely consistent that at The Forbes 400,and his net worth like what forbes published in last time was around $46 billion .

Buffett is well-known for his adherence to the value investing philosophy and personal frugality, irrespective of his immense wealth. Often known as the 'Oracle of Omaha' or 'Sage of Omaha', Buffett is a renowned philanthropist and has announced to give away 85% of his fortune to the Gates Foundation as charity.

 Warren Buffet, he is creative man in business world with his brave heart and personality.