25 Reasons Why Warren
Buffett Is a Multi-Billionaire
25. He started investing young
Warren Buffett bought his
first stock at age 11.
became hooked on
all things business –
he bought a paper
route at 13 and
never looked back.
24. He learned from the best
As a 20 year-old, Warren
Buffett studied and worked
under the tutelage of
Graham is known as the
father of “value investing”
23. He didn’t stop learning
Even today, Buffett says he
spends time reading and
“I insist on a lot of time being spent, almost every day,
to just sit and think. That is very uncommon in
American business. I read and think.”
Photo: Timeless Books
22. He lives by two simple rules
“1. Never lose money.
2. Never forget rule No. 1”
21. He owns up to his mistakes
Being a professional investor for six
decades, you’re bound to make a few
Buffett has made plenty of
mistakes, but he owns them
and learns from them.
20. He found a good business partner
Warren Buffett met Charlie Munger in
1959. The duo teamed up in 1978.
Meeting Munger changed what
Buffett looked for in a stock and
company. Munger stressed the
importance of qualitative factors
– not just the numbers.
19. They got lucky
“Charlie and I are extraordinarily lucky.
We were born in America; had terrific
parents who saw that we got good
educations; have enjoyed wonderful
families and great health; and came
equipped with a “business” gene that
allows us to prosper in a manner hugely
disproportionate to other people who
contribute as much or more to our
18. He buys stocks and holds them… forever
Warren Buffett and Berkshire Hathaway
bought shares of Coca-Cola in 1988.
Berkshire’s original $1.3 billion position
is now worth over $16 billion.
Buffett has said he never plans on
selling a single share.
17. He lives within his means
Despite being worth over $60 billion,
Buffett still lives in the modest Omaha-
home that he bought in the 1950’s.
16. He values reputation
“It takes 20 years to build a reputation
and five minutes to ruin it. If you think
about that, you’ll do things differently.”
15. He loves the unloved
Most people get caught up with the
newest and hottest tech gadget – not
"I will tell you now that we have embraced
the 21st century by entering such cutting-
edge industries as brick, carpet, insulation
and paint. Try to control your excitement.“
14. He waits. And then waits some more
Perhaps no investor is more patient than
Buffett bought shares of Washington Post in 1973
for $10 million. Nearly a year after his initial
investment, he had endured a 20% unrealized loss
on the position.
By 2004, Buffett had an unrealized gain of $1.7
billion on the position.
Waiting paid off.
13. He knows how to be “different”
During the 2008 financial crisis, most
investors didn’t want anything to do with
He penned this article for the New York Times and
was proved correct when the world didn’t end.
12. He stays within his circle of competence
Warren Buffett isn’t dumb. But, he also
knows he can’t be an expert on
He sticks to the industries (banks,
insurance, consumer goods) that
he knows and avoid the ones
(tech) he doesn’t.
11. He trusts others
Berkshire Hathaway owns dozens of
Warren Buffett micro-manages 0
10. He focuses on what he can control
Warren Buffett is an investor and
businessman. He’s not a politician,
scientist, or fortune-teller.
Buffett only focuses on the
factors he can control: His
emotions and his own decisions.
9. He realized the power of insurance
An insurance policy buyer pays the
insurer cash up front for a service they
might receive. This gets cash in the hands
of Warren to invest quickly and often.
Buffett calls insurance:
“Berkshire’s core operation and the
engine that has consistently propelled
our expansion since 1967.”
8. He is humble
If most of us had over $60 billion, we’d
probably have an ego the size of Omaha.
Not Buffett. He still sings the
praises of others.
Buffett on the head of Berkshire’s insurance
operations (Ajit Jain):
"If Charlie, I and Ajit are ever in a sinking boat –
and you can only save one of us – swim to Ajit
7. He doesn’t pay a dividend
Dividends can be great. It’s cold-hard
cash in investors’ pockets.
But Buffett understood early that
he could earn more on that
money by keeping in Berkshire’s
pockets and rewarding investors
by growing the business.
6. He doesn’t check stock prices daily
Daily stock prices mean basically nothing
when you are investing for decades.
“Games are won by players who focus on the playing field --
not by those whose eyes are glued to the scoreboard. If you can
enjoy Saturdays and Sundays without looking at stock prices,
give it a try on weekdays.”
Photo: Rafael Matsunaga
5. Rhetoric doesn’t scare him
Turn on the local or national news, and
you will probably be told something
terrible is happening.
Buffett looks at the glass half-full.
“Of course, the immediate future is
uncertain; America has faced the unknown
4. He loves his job
You don’t work for over 60 years by
hating your job.
"I found what I love to do very
early...when I was seven or
eight years old I knew that
this particular game really,
really intrigued me. And then
I had some great teachers
along the way."
3. He collaborates for success
Some powerful people want to control
everything themselves. Not Buffett.
He recently teamed up with a private equity firm, 3G
Capital, to buy Heinz. Buffett saw how 3G could help
the company and didn’t let pride stand in the way.
2. He thinks in “generations”
Warren Buffett is 83 years old, but he’s
running Berkshire Hathaway as if he’ll be
around for another 83 years.
Lesser minds would try to squeeze out all of the glory while they are still
around. Berkshire’s big moves into the energy and railroad business show
Buffett’s willingness to think beyond most people’s timeframes.
1. He never retired
Warren Buffett could have easily retired
in this 30s. But he didn’t.
In fact, an estimated
99.6%of his net $65 billion net worth
was accumulated after his 50th
Warren Buffett and Berkshire
Hathaway own nearly 9 million
shares of this company. Click below
to learn more!