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warren Buffet


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Warren Edward Buffett (born August 30 (August 30, 1930, in Omaha, Nebraska) is an American inventor, businesswoman and philanthropist personality. He is considered one of the world's greatest investors of the stock market and is the CEO and CEO of Berkshire Hathaway Company and the largest shareholder. As of February 11, 2008, due to the net worth of US $ 62 billion, Forbes rated him the richest person in the world.

Often called "Oracle of Omaha," In spite of having wealth, Buffett is known for his principle of value investing and due to personal frugality. His 2006 annual salary was about $ 100,000, which is much less compared to the executive remuneration of senior executives of other companies like him. When he had spent 97 million dollars from Bark Shire's money for a commercial jet in 1989, he jokingly named his name "inexplicable", because in the past he had the same reference to other chief officers He is still living in the same neighborhood of Omaha's central Dundee neighborhood, which he bought in 1958 for $ 31,500, which is worth $ 7 million today.

Buffett is also a noted philanthropist. In 2006, he announced a plan to donate his property, according to which 83% had gone to the Bill & Melinda Gates Foundation. In 2007, he was named the 100 Most Effective World He was also posted in 100 Most Influential People. He is also serving as a board member of the Grinnell College trustees.


Early life and Benjamin Graham

Warren Buffett was born in Omaha, Nebraska on August 30, 1930, his parents' name was Howard (Howard) and Leela (Stall). Being the son of a local stockbroker, his stock was confronted at an early age. Benjamin Graham was one of his most influential consultants. Graham's ideas left him so much that he was admitted to the Columbia Business School to receive direct education from him. According to their own: "I am Fisher 15% and Benjamin Graham 85%." As he often used to say about Graham's education: "Seeing stock as a business, rising market ups Trying to use it for your benefit and to be safeguarded, These are the basic principles of investing. Ben Graham taught this to Umka. Even after hundred years from now, the principles of investment remain the same.


Public stance


Buffett:

According to him, the number of such consultants was increasing, which do not increase any value and compensation is only available by how much they have made in the business. For this, they have repeatedly criticized the financial industry. They have pointed to the increasing quantity of share purchase-bench as evidence of the fact that most of the profits of the investors are going in the pocket of brokers and other middlemen.
In 1998, at Harvard, he insisted on the non-productive aspect of gold: "It is extracted from the ground in Africa or anywhere else. Then we melted it, we dig another pit, put it in and Some people also give money to protect him, there is no usefulness, if anyone is watching from Mars, his head will be scratched.
They announced that in 2006, only 19% of their total income was paid in federal taxes, while their employees paid 33% even after a meager income.
They believe that the US dollar will lose its value in the long run. In their view, the United States' growing deficit is a matter of concern, due to which the US dollar and other assets will be devalued. As a result, one of the US estates, The ownership of a large part, is going on in the hands of foreigners. It inspired Buffett to arrive in the foreign exchange market for the first time in 2002. However, in 2005, he made quite a lot of interest in his stake, because the changing interest rates increased the cost of holding currency contracts. According to Buffett, there will be a fall in the bearish dollar, and they are planning to acquire some of the companies whose good share of revenues comes from outside the US.
They think that the world is close to the maximum capacity of its oil production and will gradually decrease this production.
They believe that the government should not be in the business of gambling. According to them, there is a tax on ignorance.
Buffett's speech is known for his mix of business and humor. Each year Buffett carries out annual meeting of Berkshire Hathaway's shareholders in the Qwest Center (which is in Omaha, Nebraska). In this meeting, more than 20000 people come from America and abroad, due to which it has been nicknamed "Woodstock of Capitalism."
The annual report and letter prepared by Buffett for shareholders of Burke Shaw often get covered by the financial media. In the writing of Buffett, you will find literary quotes from the Bible to Mae West, as well as the advice of Midwestern and many jokes. Some websites appreciate the properties of the buffet while others condemn the way they do business. And reject their investment advice and decisions.


Buffett also:

They are in favor of inheritance tax; they say that the removal of it is the same as "to choose the 2020 Olympic team to choose the eldest son of the gold medalists of 2000 Olympics". [20] Buffett testified in front of the Senate in 2007 and motivated him to preserve the estate tax so that he could be saved from the plutocracy. Some critics, including John Berlau, said on August 23, 2004 National Review It has been pointed out in this context that there is a personal advantage in the continuation of Buffett's (by the name of Berkshire Hathaway), because of this tax he has taken advantage of the former business dealings and some such insurance Schemes are also included in the development and marketing that protect the insurance holders from future property tax payments.
It is considered the most responsible for the FASB (FASB) 123 (r), or Stock Option Expensing, in the Income Statement of GAAP. When asked about this subject in the 2004 annual meeting, he rejected the FASB by the United States Congress and the Securities and Exchange Commission, which was issued by the company for the stock-option compensation To say as an expenditure, the decision was compared to that bill, which was introduced in the Parliament of Indiana regarding the value of Pi to be changed from 3.12159 to 4.
The current 2007 fall in the financial sector is called "poetic justice."
Junior Achievement was included in the US Business Hall of Fame in 1997.

Historical timeline


1943: (13 years old)

Buffett filed his first income tax statement and gave up his 35 dollars as an expense.


1945: (15 years old)

In the last year of high school, Buffett and one of his friends purchased a used pinball machine in 25 dollars and placed it in a barber shop. Only in three months they have different machines Had become places


1949: (19 years old)

In 1949, he was given a place in Alpha Sigma Phi, while he was at the Wharton Business School University of Pennsylvania. His father and uncle were also members of the Alpha Sigma Fi community's Nebraska chapter, where finally Warren was sent.


1950: (20 years old

Buffett applied for admission to Harvard Business School but was refused.
Buffett enrolled in the Columbia Business School because he knew that Benjamin Graham and David Dodd, two known securities analyst, read there.


1951: (21 years old)

Buffett discovered that Graham was a member of the GEICO Insurance Company's board at the time. After reaching Washington by train on Saturday, he continued knocking on the doors of GEICO's headquarters until a jamadar allowed him to come in. There he met Lorimer Davidson, Vice President, whom he would be not only profound but also a good friend. He talked about insurance business for four hours. Remembering that, Davidson says that after only 15 minutes of discussion he understood that Buffett is an "extraordinary person."
Buffett received a bachelor's degree from Columbia and wanted to work on Wall Street. Both his father and Ben Graham decided to do this to him. Buffett proposed to work for Graham free, which he rejected. They bought the Sinclair Texaco Gas Station as a moving investment, but it did not achieve the expected success. Meanwhile, he worked as a stockbroker During this time, Buffett participated in a public speaking course from Dale Carnegie. Using their learned, they got the courage to read a night class, "the principle of investment." The average age of the reading students was twice the number.


1952: (22 years old)

Buffett married Susan Thompson.

1953: (23 years old)

Susan's first child, Susan Ellis Buffett

1954: (24 years old)

Benjamin Graham offered Buffett a job in his partnership company on the initial salary of $ 12,000 per year. Here he joined the Walter Schloss with a job.
Graham, who was a hard man regarding working, was convinced that if a balance of the stock and its inherent value is properly balanced, then there is a great scope for security. Buffett's understanding of this demand of Graham is worth more than his price. But he also raised the question that if these criteria are not so strict, then some big winners with qualitative values ​​will get rid of them.
Susan has another child, Howard Graham Buffett

1956: (26 years old)

Benjamin Graham retired and ended his partnership.
Buffett's personal savings now exceeds $ 140,000.
Buffett returned home to Omaha and Buffett Partnership Ltd. The name created an investment partnership by name.

1957: (27 years old)

Buffett's three partnerships continued for the whole year
Buffett bought a five-bedroom plaster house at Fenam Street for $ 31,500.


1958: (28 years old)

Susan has a third child, Peter Andrew Buffett
Buffett's five partnerships were going on throughout the year.

1959: (29 years old)

Buffett's six partnerships were going on for the whole year.
Buffett met Charlie Munger.

1960: (30 years old)

Buffett's seven partnerships were going on throughout the year.
Those partnerships were: Buffett Associates, Buffett Fund, Maid, MD, Glenoffe, Mo-buff, and Underwood.
Buffett asked one of his partners, who was a doctor, to bring ten more doctors who would be willing to invest $ 10000 in their partnership.In the end, 11 doctors got ready for the investment.

1961: (31 years old)

Buffett disclosed that more than 35% of his stake in the Sanborn Map Company was part of the assets.
Buffett explained it in 1958 that Sanborn was selling at $ 45 a share, while the value of his investment was 65 dollars per share. This meant that the buyer was considering the value of Sanborn's price "$ 20 lower" per share and was not ready to give more than 70 cents a dollar, for investment in which companies with maps of Adi are trading.
Buffett disclosed that he got a place on the board of Sanborn.

1962: (32 years old

Buffett became a millionaire because he had more than $ 7178500 in his partnerships in January 1962 and 1025,000 of them were Buffett.
Buffett made a partnership with Sadi Partnerships.
Buffett discovered a garment manufacturing company, Berkshire Hathaway Buffett's partnership started buying his shares at a price of $ 7.6.

1965: (35 years old)

When Buffett's partnerships began buying Berkshire's shares with considerable aggression, he had to pay a price of $ 14.86 per share, while the company's working capital (excluding liability from the current asset) of $ 19 per dollar The stock was sitting and it was not included in the real estate (factory and equipment etc.).
Buffett took control of Berkshire Hathaway at the board meeting and announced a new president to run a company, Ken Chase.

1966: (36 years old)

They stopped taking investments in new capital investment partnerships.
Buffett wrote in his letter "Until it appears that the circumstances have changed (under some circumstances additional capital can improve the results), or new partners can increase some prices rather than just capital investment, I can buy BPL I have not intended to take any new partner. "
In another letter, Buffett announced his first investment in a private business - HOCHSCHILD, KOHN & Co., a privately owned departmental store in Baltimore.

1967: (37 years old)

Berkshire paid its first and only dividend of 10 cents.

1969: (39 years old)

After his successful year, Buffett, after finishing the partnership, transferred the property to his partners. The property included Berkshire Hathaway's shares.

1970: (40 years old)

As chairman of Berkshire Hathaway, he started writing his world-famous papers.

1973: (43 years old)

Berkshire started purchasing shares of the Washington Post Company. Battery became close friends with Katharine Graham, who controlled the company and its main news, and its Board of directors became.

1974: (44 years old)

The SEC started the formal investigation of Warren Buffett and Berkshire by one of their merger.

1977: (47 years old)

Berkshire purchased the Buffalo Evening News indiscriminately for $ 325 million. Allegations of betrayal

1979: (49 years old)

Berk Shire started buying ABC shares. When the share price was $ 290, Buffett's deposit capital was $ 14 million. However, he only lived on his salary of $ 50000 per year.
Berkshire started the year with $ 775 per share and finally ended at $ 1310. Buffett's deposit capital reached $ 62 million. Forbes 400 came to their name for the first time.

1988: (58 years old)

Buffett began to buy the Coca-Cola Company stock, doing almost 7 percent of the company's purchase for $ 1.02 billion. One of Berkshire's most attractive investments, which he has kept so far.

1990: (60 years old)

The scandals related to Greenberg and Gutfried appeared.

1999: (69 years old)

According to a survey by Buffett to Carson Group, the head capital of the 20th century is said to be a leader, also leading Peter Lynch and John Templeton.

2002: (72 years old)

Buffett entered the $ 11 billion forward forward contract to provide US dollars in comparison to other currencies. By April 2006, their profits on these contracts were more than $ 2 billion.

2004: (73 years old)

His wife, Susan, died.


2006: (75 years old)

Buffett announced in June that he will gradually start 85% of his share in Berkshire with five organizations from July 2006 as annual gifts. The biggest contribution to the Bill and Melinda Gates Foundation Will go.

2007: (76 years old)

Buffett announced in a letter to his shareholders that he is looking for a young successor or perhaps heirs who can run their investment business. [29] Buffett had chosen Sand Simpson for this role before that Investigations in GEICO etc. Although Simpson is only six years younger than him

2008: (77 years old)

According to Forbes, Buffett became the richest person in the world in place of Bill Gates, who had this title continuously for thirteen years.


private life

Mr. Buffett married Susan Thompson in 1952. They had three children, Susie, Howard, and Peter (Peter). They started living separately since 1977, although Susan died in July 2004. They remain married only. Their daughter Susie lives in Omaha and performs charitable work through her Susan A. Buffett Institute and is a national board member of Girls, Inc. (Girls, Inc.).

, On his 76th birthday in 2006, he was always unmarried and with his long-time partner Astrid Menks, who was 60 years old and living with him since his wife moved to San Francisco in 1977. Got married. The interesting thing is that both of them had met Susan Buffett, before going to Omaha to make her future in music. Those three were very close, and friends would have written on the invitation sent for the holiday "Warren, Susie and Astrid "(According to Roger Lowenstein's book Buffett: The Making of an American Capitalist). Susan Buffett briefly spoke about this relationship in about four Lee Rose Show (was in an interview with Charlie Rose Show), the buffet was a rare glimpse into the private life.

He is a very keen player of Bridge (a game of cards), and he is saying 12 hours a week spent playing this game. He often plays with Bill Gates and Paul Allen.

In 2006, for the Buffett Cup, they had the purpose of a bridge match. In this event, which was organized on the lines of the Golf Ryder Cup (and it was also organized just before and in the same city), the team of 12 British bridges in the Americas Contains 12 players.

In 2006, they made their 2001 Lincoln Town car [34] auctioned on eBay, to raise money for Girls Inc.

She is working on an animated series with Christopher Webber nowadays, with DiC Entertainment Chief Andy Heyward, the Mill Car. By Buffett's annual meeting in Berkshire on May 6 (May 6), 2006 According to the information, this series will be the character of Buffett and Munger and will teach healthy financial habits for the children throughout life. The cartoons of Buffet and Munger are shown during the whole weekend, And before the start of the meeting, the special Cinema of Harvard was in the form of an animation.

In 2006, it was reported that Mr. Buffett did not have cell phones, he did not have a computer on his desk, and he used to run his car, Cadillac DTS, self.

Buffett's DNA report shows that his paternal ancestor is his hail from Northern Scandinavia, while his mother is most likely to have roots in Iberia (Iberia) or Estonia. [38]


Charity

In June 2006, Buffett gave the B-series shares of approximately one million Berkshire Hathaway (whose value was approximate $ 30.7 billion as of June 23, 2006) to the Bill & Melinda Gates Foundation. It became the largest charitable donation in history. Beginning in 2006, the institution will receive 5% of the total donation annually in July every year, Buffett Gates will also become a member of the Board of Directors of the institute, although he has no intention of directly joining the institution's investments.

Both Warren Buffett and Bill Gates are among the enthusiastic supporters of Planned Parenthood, a non-profit organization, and receive financial support from Buffett and the Bill and Melinda Gates Foundation. Planned Parenthood alone makes up about 20% of miscarriages in the US. Planned Parenthood receives almost a third of his money from government grants and contracts ($ 33.67 million in 2007), and the remainder is donated by the clinic income and wealthy individuals like Warren Buffett.

They have also announced their plans to give Berkshire stock worth approximately $ 6.7 billion to those Susan Thompson Buffett Foundation and other institutions run by their three children. From their previous statements, One important change was in which he had said that most of his property would go to the Buffett Foundation. The majority of his wife's estate, whose value That's 2.6 billion dollars, after his death in 2004, he went to the same institution.

Their children will not be able to inherit a large part of their property. Their move is in line with the views of their former ones in which they opposed the transfer of property from one generation to another. Buffett once remarked, "I want to give my children enough amounts so that they can do anything they want, but I do not want to do too much that they should get niggle"

1988 The statements, respectively, show their thoughts about their property and why they had planned for a long time to share that:

"I do not have the problem of guilt regarding money" I am that my money represents a huge number of claims on the society, just like seeing it. It's like I have small pieces of paper Which I can change in consumption. If I want to keep 10000 people on the job, do nothing else, only make my picture. And GNP will go up again, but its utility is something I will not be able to stop those 10000 people from doing other necessary tasks such as AIDS research, or teaching, or nursing. Though I do not do that. I do not use that many claims. Humanity is not anything that I want to get too much. And I will almost leave all those claim checks for donations after the death of my wife and my wife. (Lowe 1997: 165-166)

On June 27, 2008, Zhao Danyang, general manager of "Pure Heart China Growth Investment Fund," gave away the auction of the eBay called eBay "Lunch with Warren Buffett" for the five days online game of 2008. Won with the highest bid of $ 210100. Zhao got 76-year-old Buffett with food rights in the Smith & Wollensky Steakhouse of New York; he could also call his seven other companions on this private feast and could ask anything from Buffett, except What are they buying for this? With the money received from the auction, the San Francisco Glide Foundation benefits. In 2007, Mohnish Pabrai did the night with Buffett.

Buffett donated 512169 "B" class of Berkshire shares to the Bill & Melinda Gates Foundation (451250 shares) and two other charitable organizations. The total value was $ 2.05 billion according to $ 3999 is.

Buffett gave the $ 18.8 billion needed to acquire Dow Chemical for the acquisition of his Rohm & Haas (Rohm & Haas). Thus, he was awarded Berkshire Hathaway, which provided $ 3 billion This became the largest shareholder of this vast group and exposes their great hunger during the current crisis of debt and stock exchanges.


Writing

Warren Buffett's writings include his annual reports and numerous articles. Buffett has found this academic situation in his article The Superinvestors of Graham-and-Doddsville, according to which the market is excellent. And defeating the S & P 500 is criticized as "just a punch," and mentioned many members of Graham and Dodd's foreign investment principles. Apart from Buffett, Walter J. Schloss, Tom Knapp, Ed Anderson (Tweedy, Brown Inc), Bill Ruane (Sequoia Fund, Inc.), Charles Munger, Rick Guerin (Pacific Partners, Limited) and Stan Perlmeter (Perlmeter Investments) Who beat the S & P500 "year by year."

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