Warren Buffet is not only one of the richest men in America but also in
the world. It is not another rags-to-riches story. Neither is it a story of
a man who through a stroke of luck became an overnight billionaire. It is
the story of an enterprising man who, through his resilience and
resourcefulness, managed to make his money grow and ultimately carve a niche
in the business world.
Even as a child, Buffet knew the value of money and was preoccupied with
the idea of becoming rich. His money-making ventures were many and varied.
He left no stone unturned in his endeavors to become rich. In fact, he
channeled all his energies into making as much money as he could. Even when
he was 5 years old, he set up a stall in front of his house selling chewing
gum. Next, he turned to selling lemonade in another part of town. His other business ventures during childhood included selling used
golf balls and going door-to-door selling soda pop during summer. As a
teenager, he saved as much money as he could.
While boys of his age were fascinated by model aircrafts and other
electronic toys and gadgets, Warren was interested in the stock market. He
closely monitored the prices of shares and at the young age of 11, Warren
made his first investment when he purchased $114 worth of shares. Three
years later, he invested $1200 in a 40-acre piece of farmland, which he
As a teenager, Buffet was earning $175 a month delivering newspapers to 500
homes. Unlike other boys of his age, Buffet did not work at part-time jobs
to supplement the family income or to increase his own pocket money. He
worked for only one reason-to save money and this he did.
By the age of 21, Buffet had an accumulated savings of $9800. He invested
his savings in the stock market. Unlike most other stock investors, Warren
did not purchase stocks by mere speculation. He would first do a thorough
research of a company's assets and earnings and study the company's
prospects of expansion. He would spend hours poring over business manuals
and other materials. He would invest when the stock prices nosedived to far
below their real value. In other words, Warren would purchase shares when
other investors were hesitant.
Warren Buffet's first major investment was in New York when he invested the
bulk of his savings in the shares of the Government Employees Insurance
Company, of which he is now the owner. The ordinary man in the street could
not have done it. But Buffet was no ordinary man. He had studied business
and finance at the University of Nebraska and, the Columbia Business School.
His knowledge in both these fields of study sharpened his business acumen.
Buffet scored his biggest coup in Omaha where he set up his very own
company, Buffet Associates Ltd. in 1956. Within a span of a few years,
Buffet raked in millions of dollars in profits. His independence of mind,
ability to focus on his work and the confidence he had in his own judgment
all helped him to amass a fortune.
Summarize how Warren Buffet became a millionaire and the qualities
which enabled him to become a successful businessman.