Surprising Never Knew About Warren Buffett -Myassignmenthelp.Com

Question: Discuss About The Surprising Never Knew About Warren Buffett? Answer: Introducation Warren Buffett, one of the most dominant investor around the globe was born on 30th August, 1930. At present he is working as the CEO of Berkshire Hathaway and is commonly referred as the Oracle of Omaha. He is solely responsible for the overall growth of the company and for it to become one of the biggest conglomerates internationally with over 60 companies together with Duracell, Dairy Queen and Geico. Globally, he is the second wealthiest with the net worth of around $76.9 billion. At the early age of 11, he started trading in share market and was an official taxpayer by the age of 13 proving his passion for tax effectiveness. By the time he turned 16, he made huge revenue which is around $53,000 in current dollars (Elkins, 2015). During his teenage days, he made more money than his teachers and seniors by doing few businesses such as paper delivery, selling stamps and old golf balls etc. Considering his huge success, no one can ever imagine that he was refused admission at the Ha rvard University and chose Columbia University where his icons Benjamin Graham and David Dodd were teaching. Since he was not Jewish, Benjamin Graham refused to employ him for a particular post. But he was persistent. Being reluctant at public speaking, he took a Dale Carnegie course on the same of around $100 at the age of 21. Warren Buffay-Some Interesting Facts One more interesting fact about Warren Buffett is that despite of being a billionaire, he has been residing in the same house in Omaha since 1958 which he initially bought for around $31,500. In this era of advanced technology, he still makes use of Nokia flip phone instead of smart phone and doesnt makes use of computers and internet which is clear from the fact that he has mailed only once in his entire life which was sent to Jeff Raikes of Microsoft and ended up in controversy(Kirkham, 2014). He spends around 12 hours in a week to play bridge. He is an avid reader and spends most of his time reading. He follows unhealthy lifestyle in terms of eating and drinking coke. With a 9.3% share, his company is the biggest shareholder in Coca Cola (Leadem, 2016). Inspite of the fact that he had always been victorious, his net worth was $3.8 billion more on his 60th birthday which shows that around 94% of his capital was gained much later in his life. The GDP of Uruguay is projected to be lo wer than his net value. Not only is he recognized as a successful investor but is also considered as a generous donor. He created The Giving Pledge in the year 2010 together with Bill and Melinda Gates to request richest group globally to donate greater part of their assets for good and social cause. In the year 2016, he promised to contribute 85% of its companys shares steadily to charitable organizations. Because of his generosity, he has been recognized with the Presidential Medal of Freedom which is the biggest national award. He also has contributed huge amount to The Apple Campus. Buffett has always been exceptional in his performance. He stands at number one and has the biggest record in thrashing the market amongst all the top investors (Holodny, 2014). Berkshire Hathaway is the biggest investor with 24% shares in The Washington Post (WPO) as Buffett has always been connected with the company from his high school days (Reed, 2011). In relation to shares and stock market, Buffett has always followed a straightforward and uncomplicated approach. Instead of possessing numerous of diverse securities, his company comprises of shares from around 30 companies inclusive of American Express, Johnson Johnson, Kraft, Wells Fargo, Procter Gamble, Coca Cola, Wal-Mart and ConocoPhillips. With his philosophy of relating success with love rather than money, it makes him more appealing and renowned worldwide and is so popular that people pay in millions just to have food with him. The investing magnate splurges economically although he receives around $100,000 from his com pany yearly. Being guided by his own certain principles which he uses in investment, he has given some really interesting and motivational quotes related to the same. One such quote is: Accounting is the language of business, and you have to learn it like a language To be successful at business, you have to understand the underlying financial values of the business. Key Points Related To Successful Investment Warren Buffet gives exceptional advice on successful investment. First and the most important advice given by him is that if one cannot perceive a particular business, no investments should be made in that business. An individual working in an organization will have more knowledge about its business and related companies in that area. However, the investment market is huge with diverse companies and it is very difficult to know and predict each and every companys future prospects in shares. According to him, it is not possible to have a view for the whole market. Thus, even if one is investing in such field, it should be done with alertness. This is proven in case of Warren Buffett as he has always been reluctant in investing in technology field with an exception of IBM (ValueWalk, 2017). Another important advice that he gave was relating to the quality of business. There should not be any negotiation in the quality of business. Having an experience of over 50 years, he believes that high class companies give more development opportunity in future than the low class ones. This he learnt by wrongly investing in low priced texting industry long time back. Hence, investment should be made in high quality companies for long term and steady returns. Return on invested capital is the best way to judge the companys quality. Moving further, Buffett always had a concerted group of shares. He gives valuable direction to investors to keep on to their shares for the entire life. It is difficult to find a suitable good quality business to invest and such business provides good prospects for future and increases its worth with the course of time. Also, rudiments take time for the share prices to be favourable. Further, continuous trading in securities may incur lower profits as major earnings will be lost in duty and commission (Simply Safe Dividends, 2016). Thus, investment is the game of persistence. Hence, one should plan to hang to their shares rather than planning to invest for a specified period of time. Further, he guides that a person should not possess more than 20 to 40 securities in diverse companies to have favourable returns. Before investing one should take into contemplation constructive long-standing monetary distinctiveness, fair and competent administration, striking purchasing control in opp osition to worth and knowledge about the company. Hence, it is better to be conservative and investing in few companies rather than owning large number of stocks. As by investing in diversity, one may loose on to profits by investing in few average industries. The investing tycoon also enlightens investors with a significant opinion on monetary news that impacts them. He guides that one should not pay much attention to the news as a person invests in a particular company for a long period of time and it is bound to have some minor and major fluctuations. However, one should clearly understand what impact fiscal news have on them in long term as almost all news is clamour which is proven in his case as he did not sell cokes shares despite of the reports of companys shares dropping by 4% due to momentary causes. Further, as per him investment is not at all straightforward, but at the same time it is not that complicated. It is not a simple game wherein a person always wins with approving results. Also, one should not get tricked by people who pronounce to have full knowledge about the stock market. Moving forward, he adds, an individual should have the capability of differentiating amid price and value as price is what an investor is paying and value is the return of the investment. Stock market is always fluctuating but it not necessarily has a long term effect. According to the billionaire, it is better to invest in companies who are established than in stirring companies which are trying to establish themselves. It will be more rewarding to gain profits with the course of time. Hence, it is constructive to follow an uninteresting path with slow and steady growth. He also believes that it is more advisable to invest more in low-cost index funds than in any government fund. Lastly, he counsels to invest in truthful and experienced organization. Conclusion At the end, we conclude that Warren Buffett has given some useful and experienced insights on investment. Every investor should follow them for positive returns. Undoubtedly, he is one of the most popular and successful personalities around the world. Not only is he a victorious investor, but also a great philanthropist. He is known worldwide for his charitable work. As per him, one should not invest in a hurry, should always invest in high quality business for lifetime, should invest in few known companies without paying much attention to financial news, should be able to differentiate amid price and value, should not be attracted by new and thrilling companies and should invest in low-index funds. By following his guidance any investor can become successful. References: Kirkham, E. (2014). 21 Surprising Facts You Never Knew About Warren Buffett. Retrieved from https://www.gobankingrates.com/net-worth/21-fun-never-knew-warren-buffett/ Elkins, K. (2015). 22 mind-blowing facts about Warren Buffett and his wealth. Retrieved from https://www.businessinsider.in/22-mind-blowing-facts-about-Warren-Buffett-and-his-wealth/articleshow/49082296.cms Leadem, R. (2016). 24 Surprising Facts About Warren Buffett. Retrieved form https://www.entrepreneur.com/article/290381 Holodny, E. (2014). 17 facts about Warren Buffett and his wealth that will blow your mind . Retrieved form https://finance.yahoo.com/news/warren-buffett-facts-about-his-wealth-193006548.html Reed, B. (2011). 10 Warren Buffett Facts You Wont Believe Are True. Retrieved from https://www.nasdaq.com/article/10-warren-buffett-facts-you-wont-believe-are-true-cm97581 ValueWalk. (2017).Top 10 Investment Tips from Warren Buffett- the Most Successful Investor in the World. Retrieved from https://www.valuewalk.com/2017/03/top-10-investment-tips-warren-buffett-successful-investor-world/ Simply Safe Dividends (2016). Warren Buffetts Top 10 Pieces of Investment Advice. Retrieved from https://www.simplysafedividends.com/warren-buffett-investment-advice