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Buffett facts slideshow may 2014


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6 interesting Warren Buffett facts

Published in: Economy & Finance
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Buffett facts slideshow may 2014

  1. 1. 6 Reasons Why Warren Buffett is the World’s Most Interesting Billionaire
  2. 2. 1.) He’s Giving All His Money Away • Buffett pledged to gradually give billions in Berkshire Hathaway Stock to five charitable foundations – Most will go to the Bill and Melinda Gates Foundation – The rest will go to foundations headed by Buffett’s children, and to the Susan Thompson Buffett foundation • The number of shares given away will decline each year, with the idea the share price will rise Source:
  3. 3. • Buffett’s children support his decision to give his money away • His daughter Susan said it would be “insane” to simply leave his kids so much money • Bill Gates credits his relationship with Buffett for his love of philanthropy
  4. 4. 2.) He decided to be rich at a very young age • Buffett had a paper route when he was very young and used his money to buy his first stock at age 12, and wishes he started even earlier • He understood the principal of compounding his investment returns, and of buying “real” things – He bought a small farm at age 14 with savings from his newspaper delivery job
  5. 5. 3.) He leads a very modest life • Buffett lives in the same 3-bedroom house in Omaha, Nebraska he bought more than 50 years ago • He says the house has “everything he needs” • His home is not fenced, or otherwise blocked off from public view
  6. 6. • Buffett still drives his own car everywhere and does not employ a driver or security personnel. • He does not like to travel by private jet • This is ironic, since Berkshire owns the world’s largest private jet company (NetJets) • Buffett has never been a “high society” type, preferring to be at home watching television or playing bridge. • He doesn’t even carry a cell phone
  7. 7. 4.) Buffett doesn’t micromanage • Berkshire Hathaway has nearly 100 subsidiary companies, and Buffett sends each CEO just one letter each year with a few goals • He doesn’t have regular meetings or calls • He gives his CEOs only two rules – Rule 1: Never lose money – Rule 2: Never forget rule 1 Flickr/tedizen
  8. 8. 5.) He’s a very low-tech guy • Buffett doesn’t carry a cell phone • His desk doesn’t have a computer on it • He has always been very hesitant to invest in any tech company, as most don’t fit his “wide moat” criteria Wikimedia/Nition1
  9. 9. 6.) He learns from his mistakes • Despite the public’s perception, Buffett gets it wrong from time to time. • However, he learns from his mistakes and is now a better investor because of some of them
  10. 10. • The first stock Buffett bought was Cities Services Preferred. • After he bought it, shares lost nearly a third of their value, then recovered, and he sold for just a little more than he paid. • Over the next couple of years, the share price quintupled • LESSON: When you believe in a stock, hold it for the long haul • Buffett bought into Salomon Brothers in 1987, and almost lost his reputation and fortune as a result • He thought the stock had been beaten down as a result of market conditions • Within weeks of his investment, Salomon announced it lost $70 million by trading junk bonds • In the early 1990’s, Salomon was caught up in a bond trading scandal that almost caused the firm’s bankruptcy • Buffett then became chairman and wound up keeping the company alive, eventually selling at a profit. • LESSON: Some companies are cheap for a reason!
  11. 11. Warren Buffett Just Bought 9 Million Shares of This Stock!