The Untold Story of Warren Buffett | His Journey to Wealth, Business Empire, Legacy, and 7 Facts

Warren Buffett, often referred to as the “Oracle of Omaha,” is one of the most successful and respected investors in the world. Over the course of his career, Buffett has become a household name due to his unique approach to investing, his success with Berkshire Hathaway, and his incredible wealth.

In this article, we’ll explore his life story, how he built his fortune, and some interesting facts about him that you might not know.

Who is Warren Buffett?

Warren Edward Buffett was born on August 30, 1930, in Omaha, Nebraska, to Howard Buffett, a stockbroker and politician, and Leila Stahl Buffett.

He was raised in a family that had a strong business background. From a very young age, Warren was exposed to the world of business, and it quickly became apparent that he had a natural talent for numbers and an intense interest in making money.

Growing up in a time when the United States was in the midst of the Great Depression, Buffett was already developing a strong work ethic. He began selling chewing gum, Coca-Cola, and newspapers to make money. His early ventures into business helped shape his later success in investing.

How Did Warren Buffett Start His Career?

Buffett’s journey into the world of investing began when he was just 11 years old. He purchased his first stock, Cities Service Preferred, for $38 per share. The stock dropped in value shortly after he bought it, and Warren sold it at a loss.

However, the stock later surged to $200 per share, and this early lesson in investing stayed with him throughout his career. Buffett realized the importance of long-term thinking and investing with patience rather than trying to make quick profits.

After high school, Buffett attended the University of Nebraska-Lincoln, where he earned his degree in Business Administration.

He then went on to study at the prestigious Columbia Business School under the mentorship of Benjamin Graham, a legendary investor who would have a profound influence on his investment philosophy.

Graham’s book, The Intelligent Investor, introduced Buffett to the concept of value investing, which became the cornerstone of his investment strategy.

How Did Warren Buffett Obtain His Wealth?

Warren Buffett’s rise to immense wealth began when he started acquiring and investing in companies that were undervalued.

His investment philosophy revolves around buying quality businesses at a reasonable price and holding onto them for the long term. Here are some of the key moments that helped Buffett build his fortune:

The Formation of Buffett Partnership Ltd.

In 1956, Buffett started his first investment partnership with a small group of investors, including his family. By the time it closed in 1969, Buffett had turned an initial investment of $100,000 into $1.4 million. This was just the beginning of Buffett’s success.

Acquisition of Berkshire Hathaway

In the early 1960s, Buffett started buying shares in Berkshire Hathaway, a textile manufacturing company. He eventually took control of the company and turned it into an investment vehicle, which would become his primary source of wealth.

Under his leadership, Berkshire Hathaway transformed from a struggling textile company into a powerhouse in the world of business, acquiring stakes in major companies and investments in various industries.

Strategic Investments in Big Companies

Buffett is known for making smart, long-term investments in large companies such as Coca-Cola, American Express, and IBM.

He also made significant investments in the insurance industry with the purchase of companies like GEICO and General Re. Buffett’s ability to identify undervalued businesses and make strategic acquisitions is one of the reasons why he has become so wealthy.

The Importance of a Strong Management Team

Buffett always stresses the importance of working with capable managers who are honest, competent, and shareholder-oriented. He has been known to let the managers of companies under Berkshire Hathaway run their businesses independently, trusting their judgment and expertise.

Today, Warren Buffett’s wealth is primarily tied to his ownership of Berkshire Hathaway, a multinational conglomerate holding company that owns a wide range of businesses across different industries, including railroads, utilities, energy, and retail.

Through his strategic investments and acquisitions, Buffett has grown Berkshire Hathaway into one of the most valuable companies in the world.

What is Warren Buffett’s Net Worth?

Warren Buffett’s net worth has fluctuated over the years, but as of 2024, he is worth over $142,3 billion, making him one of the richest people on the planet.

His fortune continues to grow due to the success of his investments and the strong performance of Berkshire Hathaway. Despite his immense wealth, Buffett is known for his frugality and his commitment to philanthropy.

Buffett has pledged to give away a significant portion of his wealth to charity, particularly through the Bill & Melinda Gates Foundation, and he encourages other wealthy individuals to do the same. His philanthropic efforts have made him a role model for billionaires around the world.

How Did Warren Buffett’s Family Influence His Success?

Warren Buffett’s family played an important role in his life and career. His father, Howard Buffett, was a stockbroker and U.S. Congressman, and his mother, Leila, was a homemaker.

Buffett’s early exposure to the world of business and finance, as well as his father’s values, shaped his thinking about money and investing. In terms of his personal life, Buffett married Susan Thompson in 1952. The couple had three children together: Susie, Howard, and Peter.

Susan was very supportive of Warren’s career, and although they eventually separated in 1977, they remained close friends until her death in 2004. Warren later married Astrid Menks in 2006, a woman whom he had known for many years.

Buffett’s children have largely stayed out of the public eye, although his son Howard has been involved in several of his business ventures. Despite his immense wealth, Buffett’s family has remained relatively grounded, with Warren passing down his values of humility and hard work to his children.

What Businesses and Investments Does Warren Buffett Own?

Warren Buffett’s investment philosophy has led him to acquire and hold stakes in some of the world’s most successful companies. Berkshire Hathaway’s diverse portfolio includes businesses in various sectors. Here are some of the key businesses and investments that Buffett owns:

1. GEICO: The Government Employees Insurance Company, known as GEICO, is one of Berkshire Hathaway’s most successful acquisitions. GEICO is one of the largest auto insurance companies in the U.S. and has contributed significantly to Buffett’s wealth.
2. Duracell: Berkshire Hathaway acquired Duracell, the well-known battery company, from Procter & Gamble in 2016. This acquisition gave Buffett control of a globally recognized brand.
3. BNSF Railway: In 2009, Berkshire Hathaway purchased the Burlington Northern Santa Fe (BNSF) Railway for $44 billion, making it one of the largest railroads in North America. The acquisition has proven to be a highly profitable investment for Buffett.
4. Coca-Cola: Buffett is famous for his long-term investment in Coca-Cola, which he first purchased in the late 1980s. Today, Berkshire Hathaway owns a significant stake in the beverage giant, and Coca-Cola remains one of its most important holdings.
5. American Express: Another key holding in Berkshire Hathaway’s portfolio is American Express, a leader in the credit card industry. Buffett has long admired the company’s strong brand and business model.
6. Apple: In recent years, Buffett’s Berkshire Hathaway has become one of the largest shareholders in Apple, which has been one of the most profitable investments in Berkshire’s history.
7. Other Investments: In addition to these major acquisitions, Berkshire Hathaway owns a variety of other companies, including See’s Candies, NetJets, Precision Castparts, and Marmon Group. Buffett has always been a fan of businesses with strong brands, competitive advantages, and capable management teams.

Little-Known Facts About Warren Buffett?

Warren Buffett is an extremely private person, and there are several facts about him that most people may not know. Here are a few fun and interesting things about the “Oracle of Omaha”:

• Warren Buffett still lives in the same house he bought in 1958. Despite his massive wealth, he chose to stay in a modest home in Omaha, Nebraska, which he purchased for $31,500.
• Buffett is known for his love of junk food. His favorite foods include Coca-Cola, McDonald’s, and potato chips, which he enjoys regularly despite being a billionaire.
• He only reads 500 pages a day. Buffett is a voracious reader and spends a significant portion of his day reading books, newspapers, and company reports.
• Warren Buffett is a philanthropist. He has pledged to donate 99% of his wealth to charitable causes, mostly through the Bill & Melinda Gates Foundation.
• He gave away $37 billion to charity as of 2021, most of which has gone to foundations supporting causes like health care, education, and poverty alleviation.
• Buffett never took a salary from Berkshire Hathaway. Despite being the CEO and largest shareholder of the company, he has never received a salary, bonuses, or stock options from the company.
• He doesn’t use email or a smartphone. In an age of constant digital connectivity, Warren Buffett sticks to his old-school methods, preferring to communicate by phone and use a landline.
• Buffett has a long-standing friendship with Bill Gates. Despite their differences in the tech world, Buffett and Gates share a close personal and business relationship, and they often work together on philanthropic initiatives.

Warren Buffett’s story is a remarkable one of perseverance, intelligence, and patience. He started from humble beginnings and built an empire through smart investing and a commitment to long-term growth. Today, he is a legendary figure in the world of finance and investing, and his influence can be seen across industries and markets around the globe.

His approach to investing, focusing on buying undervalued businesses and holding them for the long haul, has made him one of the richest and most respected individuals of all time. His commitment to philanthropy and his ability to stay grounded, despite his immense wealth, has earned him the admiration of millions.

Warren Buffett’s life is a testament to the power of hard work, patience, and making smart, informed decisions. He continues to inspire future generations of investors and entrepreneurs, showing that with the right mindset and strategy, anyone can achieve success.