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Warren Buffett: Who?

03/27/2010

By any chance, have you heard of him? Yes, he is the legendary American investor. Today, I’m going to talk about Buffett to tell you the power of investment and how you can also do it!

Basic information about Warren Buffet. He was born in August 3, 1930 in Omaha, NE. Warren Buffett graduated uPenn and Columbia Business School, and he is now the third richest guy in the world according to Forbes 2010: The World’s Billionaires. Buffett is the CEO of Berkshire Hathaway, a conglomerate holding company, and a great philanthropist who gave away 85% of his wealth to the Gates Foundation.

How did he do it? When he was a child, Warren Buffett was greatly interested in saving and earning money. He sold gums, cola, magazines in front of the doors of many buildings. He also bought a pinball machine in a barber shop and owned quite a lot by the time he graduated. Buffeett, best known as the investor, started investing in the age of 10, buying stocks of Cities Service. By the time he graduated high school, he had a net profit of $9,000, tremendous amount of money.

The way Warren Buffett does is very simple. He analyze the value of a company and compare it to its stock price. If he thinks that the price is low, he buys them and eventually the price goes up and he sells them. However, if it was that simple, everyone would have gone rich. Warren Buffett says that you need a lot practice and advanced common sense in recognizing the pattern of the market and the value of a company. When he first drank Coca-cola, its taste was unbelievably delicious that he thought no other company can replace it. He studied the values of Coca-cola. He also bought Posco, a Korean company, of course because of its low valued price, but the growing demand of steel.

It is nothing complicated but anyone can study and learn, experience investing. Instead of investing your money to someone else, it would be better to invest the money you have and own a company (buying stocks means having a share of the company).    ( :

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