Warren Buffet: how a boy from Nebraska became the father of value investing

Buying his first stock at 11 years old, some believe that Warren Buffet was born to go into business. His father owned a small brokerage firm in which Warren would watch the brokers talk to investors, and how they went about their daily routine. He would frequent entrepreneurial pursuits as a teen, and enjoyed much success. He went on to study at University of Nebraska, graduating with a degree in Business. Buffet went onto securities analysis after reading a book “The Intelligent Investor” by Benjamin Graham, which he said changed his life. Buffet worked as an investment salesman, which he enjoyed thoroughly unless the stocks he suggested caused his clients to lose money.

To counter having clients that would get annoyed at him for losing money, Buffet started a partnership, between friends and family, in which he would invest $100 and would grow his stake in the partnership through re-invested management fees.

Any partnership gains over 4% would be taken by Buffet and he would repay the quarter of losses incurred. Money could only been added or withdrawn on December 31^st.

By 1959, Buffet had over a million dollars in assets and a 9.5% stake in several partnerships.

Following this Buffet invested directly into businesses, using his value investing techniques to find bargains on the stock market.

Buffet later went on to buy Berkshire Hathaway and use it as a holding company, as well as National Indemnity Company, creating a stable cash flow for future investments and acquisitions.

Warren Buffet is considered the ‘father of value investing’ and the ‘dean of Wall street’. This is due to his ability to make good investments which have made him a billionaire. He is considered one of the most successful investing stories of all time.