“Price is not equal to value. Price is what you pay, value is what you get.”
– Benjamin Graham
and Warren Buffet knows this too well.
The “Oracle of Omaha” is one of the richest and most respectable man on planet. He is an investor, businessman and a philanthropist. Born on 30 August, 1936, he kick-started his business ambitions while he was 11 years old in form of investment. He brought three stocks of Cities Service Preferred for $38 each and sold them for $40.
The Berkshire Hathaway
Buffet is known for Berkshire Hathaway, and Berkshire Hathaway is known for Warren Buffet. Berkshire Hathaway is a multinational conglomerate. It is a holding company which owns shares of other corporations and Warren Buffet owns 37.7% of the giant
He has investments from petrochemical companies to banks and has transformed almost all into successful ones. His company Berkshire Hathaway or he himself owns major stocks in Wells Fargo, Coca Cola, Heinz and PetroChina among many others.
Warren Buffet supported Democratic nominee Hillary Clinton in the US Presidential Elections and called her political opponent Donald Trump for a debate as Trump hadn’t and still hasn’t shown his tax returns publicly.
The Humble Buffet
As of February 2017, Warren Buffet has a net worth of more than $73 Billion, but don’t let the numbers confuse you. He still lives in the house he brought in 1956 for about $31,000 in Omaha. He has donated $20 billion to Bill and Melinda Gates Foundation and remains active in philanthropic activities.
He believes in value investing, for a layman’s word it is to map the value of the company you are investing in, to calculate the possible outcomes and thus the chances of profit. Buffet once mentioned that the best investment he ever made was not a stock, but buying a copy of The Intelligent Investor, a book written by Benjamin Graham.
Basically, when you get to my age, you’ll really measure your success in life by how many of the people you want to have love you actually do love you.
He does not evaluates his success on wealth he accumulated but by the kind of man he is.