Warren Buffet, the World's Greatest Investor

Warren Buffett is known to many as the world’s greatest investor, widely admired for his never ending thread of success. He is widely considered the most successful investor of the 20th century. With an astounding $58.5 billion net worth, Buffett ranks second in the Forbes richest Americans 2013 list and fourth in their World’s Billionaires list. The Wizard of Omaha is noted for his intricate investment philosophies by which he turned a failing textile mill into a financial engine that powered what would become the world’s most successful holding company. Berkshire Hathaway was the company through which Buffett earned his colossal wealth as the chairman and CEO, positions he still holds to date. Berkshire Hathaway, although a single holding company, has a net worth of $143.688 billion.

Born Warren Edward Buffet on August 30, 1930, his successes have earned him nicknames such as ‘The Wizard of Omaha’, ‘Oracle of Omaha’, and ‘Sage of Omaha’ and even gained a large mass of followers under ‘Buffettology’. Currently of the age of 83 years old, he was raised in Omaha, Nebraska and was the second of three children and only son of Howard Buffet, a US Congressman. His mother, Leila Stall Buffett was a homemaker.

Family and close relatives described young Warren as a mathematical prodigy; able to add large sums of numbers rapidly in his head, a skill he still shows off to his fellow businessman whenever he can. Buffet showed signs of success as early as the age of eleven, selling soda, weekly magazines and chewing gum door to door. In 1994 he filed his first income tax return for the use of his bicycle and watch for his paper route He worked in his grandfather’s store some time later and was successful in high school as a businessman sel...

... middle of paper ...

...stocks selling at discounts, which he calls intrinsic value.

In 1952, after discovering Graham was part of the GEICO Insurance board, Buffet took a train to Washington DC and knocked on the door of GEICO’s headquarters until a janitor let him in. There he met the company’s vice president, Lorimer Davidson, and the two spent hours discussing the insurance business. Davidson would also become one of the greatest influences in his life.

Buffett’s success method involves gathering knowledge from his influences and other sources, editing it to suit his style, and modifying it into a successful concept in the present world. An example of this would be with Graham’s value investing. Unlike Graham, Buffett goes a step further with the process, going beyond the numbers, focusing on the company’s management team, and its products’ competitive advantage in the marketplace.