Warren is out of this building - the true story of Warren Buffett

 Warren is so built out the true story of
mm Buffett Warren Buffett, a stock market full of legendary Wizards. His company Berkshire - Hathaway 40 years ago, is a textile mill near bankruptcy, in Buffett's meticulous operation, the company's net assets from $ 22,887,000 in 1964, up to the end of 2001, $ 162,000,000,000; company's share price also rose as a share from $ 7 to $ 90,000 .2001, after the U.S. stock market bubble burst, the value of Buffett's investment philosophy is widely recognized. and 40 years, Buffett's investment philosophy is to trust him hundreds of thousands of shareholders of the times of high returns on , and cultivating tens of thousands of millionaires, multimillionaires and billionaires. According to statistics, only the long-term residence in Omaha, Warren Buffett, the billionaire was born 200. This edition published today on some of Warren Buffett story, hoping to inspire the majority of investors have.
born in the stock market crash of
> Small Buffett's first toy, but also one of his favorite toy, tied to the wrist is a metal Currency Converter. like a good mood, like the sale of ice cream, Buffett likes to walk around Exchange change, change the course of his conversion, and feel very fascinated with money. to do math problems, particularly those involving compound interest with a very fast calculation of the interest rate is very much from his childhood love and devotion to a pastime way.
young Buffett first case the real business is in the soft drinks industry, his mother recalled, points to buy a portable with six bottles of Coke cardboard boxes, he sold a bottle of Coke 5 cents. I began selling Coca-Cola in 1936, and I to the price of 25 cents per carton in the grandfather's grocery store to buy Coke, and then the price of 5 cents per bottle to sell in the neighborhood. This retail, so I promptly noticed Some products, business opportunities. caps, categorize them and count the number of a variety of caps and see what brand of soft drinks sold quickly, Lancaster said.
first shot to buy stocks
1942 �� 4 months, 11-year-old Buffett began buying shares of small scale: he price of $ 38 per share to buy the shares of urban services company 3 stock, then, this is all his assets. Then, he throws the price of 40 dollars per share of his stock, net of commission, he earned $ 5. A few years later, the stock's share price soared to $ 200.
accept the for data, when done all this, I picked up Graham's Buffett, even if he was a student at the time to understand the stock market investment experience and is very thorough, this experience is: do not be swayed by other people's comments 70 .20 century, because almost everyone in the news Business prospects are not optimistic and have thrown the stock, Buffett has found a unique advantage in journalism, the media repeatedly buying large stocks.
13.8
headquarters only about Warren Buffett and Berkshire Hill's incredible so many things sometimes, for example, the company's stock price 5-digit, people first skeptical. Over the years, Buffett is commonly used two telephone communication can be necessary with different contact agent. very late Berkshire has a fax machine.
in Berkshire annual report 1995, Buffett said: acquisitions received 11,000 new employees, but only our headquarters staff to 12 individuals from 11 individuals (there is no need crazy). year's annual report, wrote: 2000 Berkshire annual report, Buffett wrote: return (thick material to our 4896 tax return), successfully held a number of 25,000 tickets for the annual shareholders meeting, and to check accuracy of delivery specified in the 3660 shareholders of charity. Buffett, in his office reading, phone calls, with his managers, friends and agents maintained contact, usually short and funny text messages to answer those letters, such as an avalanche. He was very loved letters carefully read every letter. Sometimes, even in the assistants had time to transfer the letter to him, he removed himself to the first letter. Buffett away from home, by the administrative assistant to call every night on his day of the new of mail.
no guests came to visit, Buffett buried in his work, often to eat at your desk. Buffett has always been his favorite burgers, fries and Coke for lunch, plus a small amount of steak and double the sauce. Companies are a lot of work done in the office.
only $ 1,000 purse
Buffett said: those who make huge profits in the enterprise, no business is engaged in research and development work. simple and timeless Buffett is digging out from a business and collection of things. As a person of determination acquired, Pakistan Buffett likes the acquisition of companies do not like the sale of the business, for those with large factories, technology companies often shy away from changing rapidly.
Buffett did not like the employees quit. Berkshire over the past 35 years is Which branch manager of a rare departure, unless he died or retired. Similarly, Buffett himself has not changed much food, clothing remains the same year 1999, in order to contributions to a charity orphanage in Omaha, he auctioned his wallet, in the previous 20 years, he has been using the old wallet. As Buffett explained: are old, my wallet is old, my car is old .1958 years, I have been living in an old house, so I keep these things the second richest, wallet in the end how much installed? one occasion, he was invited to open the wallet, counted out 8 of about 100 dollars bills. He said: ; before 2001, Berkshire's net assets has never been negative, and 29.5% to create a record annual rate of return.
Buffett is in difficult economic times at a low price acquired businesses, and long-term holding. Buffett, investment products held over a period of many years, decades, experienced an economic boom and recession periods, until the day that ushered brilliant.
only when investors invest in the company knew nothing about when we come to need to diversify investments.
investors success is whether he really understand the extent of this investment is proportional to.
to enable investors to get real benefits, the company must be misery index higher than the investor's return on capital.
investor sentiment than the company's basic situation on the stock price has more powerful impact.
time when others fear You want to get greedy.
Warren. Buffett has been called attention. oil magnate John. D. Rockefeller, steel magnate Andrew Carnegie. Kanei Se and software magnate Bill. Gates have a common characteristic that their wealth comes from a product or invention. Buffett is a pure investors, who start from scratch, just in stocks and corporate investment, in the 20th century, one of the world's richest. In 40 years time mm from the Eisenhower era to the Bill. Clinton administration, whether bullish or a weak stock market downturn, no matter economic prosperity or a recession, Buffett's performance in the market is always very good. in the postwar United States, the major stock average annual return rate of 10%, and Buffett has reached the level of 28.6%. If a Buffett began his career in investment $ 10,000 and insisted that in the end, then by the end of 1994, the wealth will reach f billion. Buffett rich life experience and personality is full of torque, simple and rustic but Buffett infinite mystery investment philosophy and investment strategy to attract a large number of investors on the management decision makers. their annual pilgrimage to Omaha, as saints, like listening to Buffett's investment analysis mm. It's like El. Worth concerts or religion, like Easter, has become a major event in the U.S. each year. the financial sector to Buffett's writings are considered This. Graham
Warren. Buffett August 30, 1930, California was born in Omaha in the United States Neixilasi. His father, Howard. Buffett, a local securities broker and Republican lawmakers. from the initial started beyond the age to care for Warren, he was his mother as afternoon: overlooking the busy intersection, record license plate numbers of vehicles coming and going. dusk comes after, they returned to the house, expand the world grain Mahathir Herald dense in the toilet paper on the changes in the number of filled the Great Depression of 1929 to U.S. securities brokers work of his father Howard in trouble, with the result, according to family life is very orange. mother often withheld in order to allow her husband and their children to eat more eat more . until the time when Warren began to study this situation was gradually improving. through these difficult years, he has felt a persistent desire to want to become very rich. he was 5 years old there was this idea before , and since then, such an idea to have never been abandoned. Warren had sat on the school's fire escape, calmly told his friends that he will make a fortune before the age of 35. He never showed boast mind made up signs, and he himself do not doubt, some people have asked him why he want to make so much money, Warren replied: Slowly increase is a very interesting thing. cities and forth, starting their own business efforts. He could have eagerly read each picking business books, studying the financial statements of enterprises, research a stock chart. about his speculation that the stock of investment experts words have spread to schools, and teachers were all dry, hundreds want to dig out from him about the stock of knowledge. though by then he had never had any in the stock market performance of the beautiful, but people think he is the expert . he has a certain innate things, not just precocious profound, but also the knowledge that he kind of logical way to express the ability. He seems to have extraordinary insight, he talks about one thing the way people believe what he does is clear that he was saying something. first came to Washington, Warren Ye will find a Post Washington Post Five newspaper delivery route, about 500 newspapers every morning, to send. Warren sent his newspaper income young people. Warren earned every dime savings from .14-year-old Buffett, have a keen business mind: He spent 25 dollars to buy into the old machine shop playing handball, and then rent it out, the first day he used this machine earned 14 dollars. about one month, he and his partners set up shop in the three pinball machines. business fire pole, and they extended to 7 home 50 dollars a week. that Warren had his first Rolls-Royce annual output, after the price of 35 dollars a day rental .1947 graduated from high school in Warren, he has distributed nearly 60 million copies of newspapers, relying on hard work and wisdom accumulated over 6,000 dollars. in the future university 3 years, the Warren side of doing the work almost full-time, while the name of bridge, and homework has got to graduate with his savings to $ 9,800. during which he read this. Graham's classic: Mindanao Ming's investors. Columbia Business School under the tutelage of his admiration for this. Graham.
Graham is considered the financial analysis of the pedigree. He laid the methodology for the stock selection basis, before that, it is gambling that the door pseudo- Science is no different. Graham's first contribution is a clear definition of investment, Graham's second contribution is to propose a number of common stock investment analysis. typical.
studying at Columbia University, studying with Warren Buffett Graham eagerly these theories. He got Graham taught at Columbia for 22 years Huai had a A then can be called a true Buffett's trading at a stock brokerage company to do Falk. In a Falk Buffett made his greatest progress the company is not in the investment industry, but in the Dell. Carnegie open class. in class , he learned in conversation among the large crowd with ease and skill. After teaching by the University in Omaha, In 1954, Buffett went to New York to mentor Graham's investment firm mm Graham Newman in the company. Because Graham's conservative attitude, so he refused to make any subjective analysis of the company, but willing to stick to their teaching guidelines. This often makes investment in companies with the phenomenon of holding cash at hand to be cast, which lost many opportunities. Buffett aware of this and began to study the quality factor of the company's intrinsic value. To this end he would personally visit the company and explore a business more successful than another secret. Although Graham was not in favor of Buffett's approach, but Buffett was quietly used these results in their investment, he made �ȸ��׶�ķA Newman higher investment rate of return. from leaving campus since 1950, Buffett's surge in private capital from $ 9,800 to $ 140,000 .1956 years, Graham retirement, investment company is dissolved, the Vampire Slayer especially with his 14 million organized. limited 7 members: sister Alice and her husband, Aunt Alice, and more grams. Thompson mm his former roommate and his mother, and his lawyer, Dan. MOK mm raised $ 105,000 in capital, Pakistan Fit as a general partner, invested $ 100, though this is a very small number, but Buffett is no longer for his father or the. Graham to make money, but for his own partnership mm Buffett Limited money. In fact, his father thought that the then Road. Jones industrial average 200 points higher the level, so advised him to buy shares before the slight wait. If he listened to his father, perhaps 100 dollars today all his wealth, but this time, through the theoretical study and practice honing Buffett has become more mature. he knew to buy a single stock and follow the market trend for the difference between speculation: buying shares requires specialized accounting and math skills. but you need to master the market volatility investors control their emotions. in the stock market, the strength of feeling is often more powerful than the power of reason, investor greed and fear are often higher or lower share prices or stock intrinsic value. Thus, the feelings of investors than the company's basic situation on the stock price has more powerful impact. When people greed or fear, often the price will be stupid to buy or sell stocks. The long-term value depends on the company stock economic performance, rather than the daily market conditions. the long term, common stocks and corporate performance of the underlying economic value of the very significant correlation. Buffett has been able to make themselves the emotional impulses in the stock market, the In his office, can not even find a stock quote machine. At this point, 26-year-old Buffett has a moderate savings and income is not stable, but has a staggering self-confidence mm he began to worry about how to deal with when He became rich after the countless money, but worried that his children will be the corrosion of money, but it does not seem to worry about how to earn them. while Buffett inner confidence and a clear plan to make as an independent operator not brilliant performance he was able to obtain funds from the public. money he needs from the outside Huai mm thing, he provides advice on the nature and financial forecasters are skeptical. for an investment value of stocks, the Vampire Slayer Special to convince themselves, and once he did, he did not care for others. because he knew the emblem of predicting stock market movements and trading opportunity is meaningless; there is no information can be used to determine the macro-economic form. He only believed own analysis. He selected one after another cheap stock. his intellect is not reflected in the scope of his investment industry on the mm would only be limited, but embedded in his spirit, and that he have the whole spirit of the condensation in the vent of a wonderful, just as he was distributing the newspaper as a child. He went on a company a company to analyze it, then in his head, once a company becomes cheaper mm below the company's intrinsic value of stock , he would suddenly attack.
1961, Buffett who in ����˹�ض� company 100 million dollars under the bet, it was his largest investment ever. This is a 80-year-old windmills and farm tools factory. At the time, ����˹�ض� in stagnant sales and profits worrying struggling. Buffett a few years ago, has studied this stock is a cheap mm purchased in line with the principles of Graham stocks, Buffett Partnership's assets with a 1 / 15 to buy a controlling share of stock. later, Buffett named himself Chairman of the Board, a move that he must only the willing be an investor. But Buffett did not effort to enable enterprises to turn around, realize this, he invited Harry ~ bit true connoisseur. Liebert to manage the enterprise, Bot Buffett doing a very excellent can not do the work, from the factory for Buffett to squeeze into the cash equities and bonds to the investment after the work is never discouraged Graham else is even trying to do. to $ 105,000 bus started Buffett Partners to 1962 reached $ 7,200,000 in capital, �ȸ��׶�ķ Newman in a still higher peak. $ 1,000,000 of which the individual belongs to Warren Buffett. Although he is not in the public in fame, but he is not unknown. The initial investment by the 7 small groups of individuals have developed into an investment group of 90 people, and its members have grown to from California to Vermont.
wealth with Partners continue to accumulate, Buffett investment experience and a unique investment theories are constantly accumulating, and the accumulation of wealth, provided a powerful tool.
1962 �� Buffett's partner company to share $ 7.6 bought the New Bedford, Mass., a textile company Berkshire mm. Hathaway a minority stake. At the time, the company's working capital is twice its market price, according to Graham the number of spatial analysis and the theory of security, this is a pirated. In fact, Buffett has been brewing in the minds of new ideas not only from the Graham mm that is respected by the analysis from the perspective of the number of enterprises, but also from quality considerations. Buffett believes that investing in stocks, he should consider himself as a business analyst, rather than market analysts. securities analysts or macroeconomic analysts. static assets, but to use as a unique living power and potential of the enterprise is in operation to look at the system, the overall assessment of enterprises, from both the quantity and quality of enterprise management to examine the status and financial situation, and then assessment of the stock purchase price. If the stock price below its intrinsic value to a reasonable level, he will buy. When an enterprise business simple and understandable, and the profitability of management by a power to lead, Buffett can be very accurately estimate its future cash flows. Buffett has always maintained that a person's ability to determine the expected future capacity of the scope that he, in Buffett's mind, the company's cash flow should be like a periodic interest on the bonds as OK. For a low level of debt, and stable and can be expected corporate profits, the risk-free rate of return of all of its future discounted cash flow, Buffett would be its intrinsic value.
1963, the Vampire Slayer Start studying a particular past is not any stock he bought the same stocks mm American Express shares. American Express, no factories, no hardware assets. In fact, its most valuable asset is its name. Graham Creed, buy a stock must be so a bunch can be determined based on data. But Buffett saw a line of sight to avoid opening the assets of Graham: This is the American Express franchise value of the name. franchise means the right to monopolize the market. U.S. MRT travelers checks in the country with 80% market share, also paid card with a major stake. Buffett believes that nothing had shaken its position, it has a loyal customer base of the Graham is not from the kind of great value.
1963 �� 11 months, the American Express Company's Warehouse suffered a huge fraud, and its losses were estimated at $ 150,000,000, the company president Howard. Clark deeply understand the registration for a name on the traveler's checks companies, the public trust above all else. So in the bearer of this loss has not been determined before he announced to assume the loss, Clark asked to come up with $ 60,000,000 to the warehouse interest of creditors in order to appeal. In fact this Claims that man a liar in this incident. To this end, early 1964, American Express shares fell from $ 60 per share 35 dollars per share. But Buffett is precisely at this moment that a 1 / 4 such assets into stocks. though it may carry the potential of a large amount of debt, if the judge was wrong, he hard-won wealth and reputation will be reduced to ashes. later proved to judge Buffett is correct: American Express Company warehouse operators mm creditors first-class white-collar crooks have been a federal court trial, was sentenced to 10 years sentence, to the 1965 American Express shares rose .5 knife USD / M , is twice the price of Buffett's buying.
Warren.
Buffett Warren Buffett famous second law of Nebraska, who is well-known U.S. holding company Berkshire. Hathaway Chairman of the Board, Mao's personal assets have been rich in the U.S., ranked the top three. in the rankings of the top ten richest, Buffett, who is a stock market gain wealth from the people . Today, the well known investor Warren Buffett has become the world's investment guru, as the myth of his investment, like the story was widely read all over.
Buffett's investment in 1956, began his career 40 years, regardless of stock market and how the economic situation, Buffett has never encountered a big risk, but also never had a year of loss. After the war the United States the average yield of stocks in 10%, while Buffett has reached 28% the level of experts created in those markets, Wall Street brokers and the spectator, almost a miracle to achieve amazing high-quality asset continuous rolling.
40 years, Buffett only a few correct implementation of the investment decision to make the wealth he has today. He was upbeat about the stock market that other investors are often deeply puzzled, however, is that he has a discerning eye; he never complied with the so-called diversified investment strategy, but huge amounts of money will be invested in a few stocks. However, these types of stocks are created for his great wealth, it is stunned. as its holding of Berkshire. Hathaway stock price from 30 years to climb to $ 7.6 per share $ 30,000. Warren Buffett's success, so he was one known as the has become the player pursued around the world share the golden rule.
fact, Buffett's investment principle is very simple: only the traditional long-term investment. The truth is: is the transfer of the original sale of the stock options, stock options are the for shareholders, equity from the business operations of the acquired profits. the long term, stock prices depend on the development of enterprises and enterprises to create profits, and consistent with, and short-term price is affected by various factors and large rate fluctuations, no one can do it consistently accurate forecasts. Therefore, the real choice of stock investment should be worth investing in a really good company, bought at the right price of its stock, long-term holding, patience to wait for business growth create wealth for themselves.
investment in this concept, Buffett's investment strategy unique:
mm ignore the ups and downs of the stock market. years, we will not have any problems. should focus on business operations, as unreasonable short-term price changes, is not should not and can not close the r heart.
mm do not worry about the economic situation. Warren Buffett that the economic situation and short-term stock price, as are difficult to predict a; also correctly predicted whether or not, if the investor's stock will be in a particular economic environment to benefit, then the fluctuations in the economy, he will inevitably be faced with changes and speculation. Buffett select only those can profit in any economic situation of enterprises.
Therefore, Buffett believes that short-term hold stocks only in the economic situation is always accurately predict short-term price fluctuations can profit, and this is God and not very cost too likely, so it is not desirable. In Buffett confirmed his investment philosophy and strategy of the first two, he would only concentrate on two things left to do the. that is looking for a good company and the right price to buy its shares.
Buffett's own experience from many years, summed up the whole set of effective rules and strategy, known as the law, is divided into three:
(1) business must be simple and easy to understand. Buffett said investors financial success with his own understanding of the investment made directly proportional to, and only a comprehensive understanding of a business, investment who can be targeted, Buffett, in his decades of operating in a business all in his is not involved.
(2) the operating conditions of enterprises in the past to be stable. Buffett believes that major changes and high reward is difficult to converge, and those who have long continued to provide the same goods and services companies are the ones high return business.
(3) business to be optimistic about the long-term prospects. Buffett attaches great importance to find those with a franchise business. The so-called concession refers to the enterprises to provide goods and services have a stable consumer demand, there is no approximate alternative. Such companies can continue to raise prices and profits, even when supply exceeds demand, or potential cases not yet fully utilized, it will not lose market share or sales, and such enterprises tend to have economic goodwill, there is higher endurance to withstand the impact of inflation, even if the economic downturn or poor management are still living.
2. business law, is divided into three:
(1) the operator must be rational. Buffy especially appreciate those who can invest surplus cash to maximize shareholder wealth in the business plan, he considered those who can not find the courage to plan to return the surplus to shareholders operator services for the shareholders really, only reason. < br> (2) the operator must be honest and frank to the shareholders. Buffett that only a full and detailed disclosure of working conditions and the same success as the courage to openly discuss their own failures only trusted operators. And he himself as chairman, It is also to do so.
(3) the operator should have the courage to resist blind obedience to corporate bodies. There are many operators because of blind obedience and irrational, damaging the interests of shareholders. Buffett believes that independent thinking, resistance others have attached to the competitiveness of the operators.
3. finance law, is divided into three:
(1) examine return on equity, not earnings per share. because the company retained earnings increase the previous year capital cases, only the former considered the capital of the company increased year by year, until a more true reflection of performance.
(2) calculation of , the original meaning of accounting earnings as the company's assets do not ...