Warren Buffet: The Making of a Billionaire

Introduction

Warren Buffett is one of the most successful investors of all time, with a net worth of $81 billion. He owns more than 80 companies and has an estimated $162 billion in stock holdings. But his success can't be attributed to luck alone—Buffett's savvy investing decisions are rooted in his remarkable life story. In this article, we'll explore his humble beginnings in Nebraska as well as his decision-making style as an investor. We'll also dive into some of Buffett's best investments over time so you can see how he built up Berkshire Hathaway into one giant conglomerate!

The Birth of the Oracle

Samuel Buffet, Warren Buffett's great-grandfather, was born in 1871. Warren Buffett himself was born nearly 70 years after this date.

Buffett's father was a stockbroker and his grandfather was a congressman from Nebraska who had served as Speaker of the House during World War I. The family lived in Omaha, Nebraska where they ran a grocery store until it closed down due to poor business practices by its owner. After this experience, Buffet’s father became an insurance agent before becoming an investment banker at Prudential Securities Company where he met fellow employee Charlie Munger (his future partner).

Buying a Business

After graduating from Columbia University in 1939, Buffett bought a textile mill in New Bedford, Massachusetts. He was only 23 years old and had no experience running a business. The town was in desperate need of funds to rebuild after an explosion at its docks destroyed much of the industry in 1917.

Buffett bought the mill for $8 million and sold it for $20 million three years later—a return of 600%.

The Buffett Partnership is Born

The Buffett partnership was born out of a friendship, and it ended with a bang.

In 1968, Buffet and Munger decided to sell the firm they had created together—the partnership would be dissolved shortly thereafter. They chose not to name it or even disclose its assets; instead they sold everything under an umbrella company called “Buffett & Company” and went their separate ways.

The partnership wasn't just about business: It was personal as well. Warren Buffett said that he considered Charlie Munger like his brother-in-law (he married Susan Buffett). But when it came time for them to sell their investment firm after almost 30 years together, both agreed that this would be their last business venture together—and thus began an era when neither man invested in any new businesses until after being made partners at Berkshire Hathaway Corporation in Nebraska

Building Berkshire Hathaway

In 1965, Warren Buffet founded Berkshire Hathaway. The company was originally a textile mill in Nebraska that he bought for $11.6 million—a price tag that would've made him an instant millionaire if he'd kept it as is. But instead of leaving well enough alone and selling the business to its employees, he decided to turn it into one of the largest conglomerates in America by taking advantage of tax breaks and other government programs at that time (and still today).

By 1972, when Buffett took over as CEO after sitting on the board for years before becoming chairman in 1987, Berkshire Hathaway had grown from being worth just under $10 million into a holding company worth more than $100 million per year later on down through today's numbers ($360 billion).

Investing in American Icons

Buffett's investment in Coca-Cola

Buffett made his first billion by investing in a company that wasn’t even technically an American icon. The soda giant was formed by seven partners in New York City in 1886, and over time it became one of the most recognizable brands on the planet. Coca-Cola has been a part of our culture since then—and while its success has helped make America great, it hasn't always been so kind to people who worked there or drank their products.

Buffett's investment in American Express

In 1986, Buffett bought nearly 10% of American Express stock—a stake worth $28 million today—and took on a seat on its board as well as vice chairman position at Berkshire Hathaway (the name he would go by for decades). This move helped him secure gains from what would eventually become one of his most profitable investments: Berkshire Hathaway's stake worth roughly $20 billion today.*

Going International

In the 1960s, Warren Buffet was a pioneer in international investing. He bought shares in companies like Coca-Cola and Gillette that were based overseas. His investments made him millions, but it took time for him to realize their potential as a business opportunity.

"In fact," says Buffett in one of his books, "I would rather have had my first billion dollars invested before I turned 40 than after."

Warren Buffet rose from humble beginning to become one of the world's greatest investors.

Warren Buffet was born in 1930 in Omaha, Nebraska. His father was a stockbroker and his mother was a housewife. He has four brothers and one sister.

Warren Buffet spent most of his life as an average student at the local high school where he excelled at mathematics but struggled with reading comprehension and writing skills (which he still struggles with today).

Conclusion

Warren Buffett has built one of the largest fortunes in America by investing in companies that have a strong future. He is willing to invest heavily and change his strategy when necessary; for example, he made big investments during the recession.