hi steemians are good and wise all this time I want to introduce to you all the figure of the famous and richest investors in the world who are famous in this universe and often used as a benchmark and referral for every existing investor, who does not know this figure I think all investors know him, yes it is true he is a warren buffet people who have a lot of stocks and investments everywhere.
so now let's get to know him and the lunge he passes during this investment world but there is one thing we need to know together that the author of his story is not I do not assume that other investors are not great as he is but warren buffet figure like become an icon for the world of investors.
early life
Warren Buffett was born in 1930 in Omaha, Nebraska, from the French lineage. She is the second of three children and is also the only son of Leila and member of the American House of Representatives Howard Buffett. Buffett started his education by studying at Rose Hill Elementary School. In 1942, his father was elected for the first time (then elected 4 times in a row) to become a member of the House of Representatives of the United States. Warren Buffett Then continued his education at Alice Deal Junior High School and then graduated from Woodrow Wilson High School in 1947, and in his yearbook the description for him was "liking maths, prospective stockbrokers".
Buffett showed great interest in business and investment at a very young age. One of his early businesses was selling gum, Coca Cola, and weekly door-to-door magazines. He also works at his grandfather's grocery store. While still in high school, he earned money by delivering newspapers, selling golf balls and stamps, polishing cars, and so on. In its first tax report in 1944, Buffett demanded a tax deduction of US $ 35 for the use of bicycles and clocks to deliver newspapers. In 1945, when grade 2 sma Buffett and his friend bought a used pinball machine for $ 25 US, then put it in the salon. Within a few months they managed to evolve having some pinball machines on 3 salons in Omaha. The business is then sold Buffett and his friends to war veterans worth $ 1200 US $. Buffett's interest in the stock and investment markets began in the school days as he often visited the regional stockbroker's office near his father's stockbroker's office. On a trip to New York City when he was 10 years old, Buffett visited the New York Stock Exchange. At the age of 11, Buffett purchased 3 shares of Cities Service Utility-preferred stock, and bought 3 copies for his brother Doris Buffett (owner of The Sunshine Lady Foundation). At age 15, Warren earned more than $ 175 per month from distributing the Washington Post newspaper. At junior high school he invests in his father's company and buys 16 hectares of farmland for rent to farmers. He bought the land at the age of 14 years with a saving of $ 1,200. By the time Buffett was in college, he had collected more than 90,000 US $ (adjusted for inflation until 2009).
In 1947, Buffett was accepted at the Wharton School of the University of Pennsylvania. At first he was more interested in developing his business, but with his coercion from his father he finally signed up for college. He then graduated at the age of 19 with a Bachelor of Management Economics degree. Then he continued his studies at Columbia University, after being rejected by Harvard Business School, and earning his Masters in Economics in 1951. Warren Buffett chose to go to Columbia University because he knew Benjamin Graham taught there.
Simple business strategy, anti-speculation by warren buffet
The business strategy adopted by Warren Buffet is very simple. He did not want to bother with the circulation of rumors among stock investors. Buffet is actually more focused on companies that have the potential to grow but also still valuable to buy. He is not a stock speculator.
A stock speculator will usually make a purchase when stock prices are low then wait for when the price is high, after the high stock price then he sold it. Stock speculators focus more on playing in the short term and the profits they get come from a reduced sale price. Robert T Kiyosaki said investors of this type are not investors who make investments but more like gamblers in the stock market (speculators). Speculators can even buy stock in the morning and sell it back in the afternoon.
Warren Buffet has different ideas. The world's best investors are investing in the long term and do not trade in the short term. When Buffet wants to buy a company's stock, he will see the company's chimney is still steaming or not. For him it is a sign of whether the company is still exist and operational. Buffett is only willing to invest in a company whose business or product is well known. The principle he applied was to buy a business instead of buying stock. Buffett bought Coca Cola shares and never sold them even though its shares had plummeted in 1998-1999. He sees the long-term trend and keeps Coca Cola's stock to date.
Hall is what makes Bufffet did not want to buy Microsoft stock or dotcom company that was booming in the 2000s. Everyone in the stock market was busy buying dotcom stocks but Warren Buffet did not go along with it even he was laughed at for not buying dotcom stock. But now, it is the laughing most recently because some of the investment shares are forfeited. Buffett did not know the dotcom business and that's why he decided not to invest there. After all, Buffett is not a merchant investor but, before buying it has its own consideration.
list of best investment warren buffet throughout his career
- American Express (1964)
In 1964, the salad oil scandal unfolded. The scandal involved a vegetable oil company called Allied Crude Vegetable Oil led by Tino De Angelis. Tino gets a loan from banks including American Express with a guarantee of his salad oil stock.
So, a ship with salad oil will arrive at the dock. Then an inspector checks whether the ship contains the vegetable oil as the company claims to get the loan. But Tino was clever, he changed salad oil with water mixed with some oil. The inspector was unsuspecting because the oil was floating on the water so the ship looked really loaded with oil.
But it was time for Tino's deception to be uncovered. As a result, American Express became the biggest victim. Its shares tumbled more than 50% so the company lost about US $ 58 million plus its reputation. In contrast to others, Buffett sees this as just a moment of panic. He realizes that the American Express business is still very stable and potential. Buffett looks at how Americans start using credit cards. He knew this company would be an American blue chip.
At that time, Buffett bought 151.6 billion shares worth US $ 1.28 billion. By the end of 2009, Amex's shares were worth more than US $ 5 billion. That is, Buffett scored 290% even though he did not realize it. Until now, Berkshire still keeps Buffett's beloved stock.
- Coca Cola (1988)
When Buffett started buying Coca Cola stocks in 1988, many Wall Street analysts were skeptical. They argue, just a matter of time until another soft drink company takes over Coca Cola's market share. Plus, the company's earnings decreased 2% from a year earlier. Coca Cola's shares were then IS $ 35-US $ 45.
Buffett continues to collect these shares because he admires the brand and loves his product. In 1995, Buffett had 100,000 shares of Coca Cola worth US $ 1.2 billion. In September 2010, this share increase gave 766% profit because its value has skyrocketed to US $ 10.4 billion. Buffett has kept Coca Cola's stock until now.
- Gillete / Procter & Gamble (1989)
In the 1980s, the shaver industry was struck by the discovery of a razor blade that was replaced. Gillette's sales dropped sharply. In 1988, Consiton Partners attempted to host a takeover over Gilette. But Gilette wins the battle. In 1989, the company redefined the industry with its new Razor Sensor product. In the same year, Buffett came in by buying a preferred stock of $ 600 million worth of iUS. That means Buffett becomes the owner of Gilette's 11% stake.
In the 1990s Gilette's share contributed profits on a magnificent paper. In less than 24 months, Buffett's investment worth US $ c600 million is already worth US $ 800 million. Then the value was shot again when P & G announced the acquisition of Gilette. In one day, Buffett earned a profit of US $ 650 billion and total profits reached US $ 4.4 billion. Buffett called it a 'dream merger' and decided to increase its stake in P & G.
- Goldman Sachs (2008)
Warren Buffett was transformed into a Goldman Sachs rescue knight in the midst of the financial crisis that hit Wall Street a few years ago. On September 23, 2008, Berkshire Hathaway unexpectedly invested US $ 5 billion into a bank that was hit by the crisis. Within a few hours, Goldman's share price rose 6%.
Buffett has hoisted market confidence over Goldman. At the same time he scored a profit. Goldman agreed to pay a 10% annual dividend on Buffett's preferred stock. "The price is right, the people are right, the conditions are right, and I decided to write a check" he said.
Three years later, Goldman decided to redeem Buffett's investment. Goldman paid US $ 5 billion plus US $ 500 million for returning the loan earlier than expected in 2013. Buffett will also receive dividends, bringing total payments to US $ 5.64 billion.
On that day, Goldman CEO Lloyd Blankfein called Buffett, saying half-jokingly, "We'll pay you $ 1 in banknotes." Not to be outdone Buffett answered, "It's okay, as long as the dividends will continue to add until I finish counting all the money."
- GEICO (1970s)
GEICO is one of Buffett's first major investments. He bought the insurance company's shares because Benjamin Graham, his mentor and his idol, also became an investor in the company. Young Buffett started buying GEICO in the 1970s and kept collecting it. Until 1981, Buffett had invested US $ 45.7 million for 30% of GEICO shares.
In 1995, Buffett decided to acquire GEICO worth US $ 2.3 billion when the company was having business difficulties. The value of GEICO in 1996 reached US $ 4.7 billion, while Buffett spent US $ 2.35 billion alone to own it.In his letter to the government
well readers should be here first writing and our discussion this time for my attention thank you.