Warren buffett

Warren buffett

Members : Christian olivos

Sergio herrera

Nicolás Fernández

Lucas Ibarra

Date : 16/09/2014

Introduction

Warren Buffett is the third richest man in the world, only surpassed by Carlos Slim and his good friend Bill Gates. His wealth has been constituted through their investments in stock, all channeled through the company Berkshire Hathaway. Its main investments have focused on companies with established businesses such as American Express, Walt Disney, Coca Cola, P&G .His way of investing is based on seeking business with high upside potential and that have a good management team. From this point of view, Warren Buffett could be considered as a manager of managers rather than a stock analyst, much less should be considered a fundamental analyst, as some proclaim. He says : Since I became interested in the stock world, was fascinated by the theories of Benjamin Graham, master of the theory of "value" (as opposed to the theories of "Growth"), to be followed to become his student at Columbia University as employed in his investment firm Graham-Newman.

Small business

Warren Edward Buffett was born in Omaha, Nebraska on August 30, 1930, son of Howard Buffett, a stockbroker who later became the member of Congress.

Only male, was the second of three brothers and from an early age showed a great aptitude for business and money. Childhood friends recall their ability to perform numerical calculations, which still amazes business friends.

At 5 years the small Warren made it clear to his parents that he had a major life goal, this was get rich. At 6 years bought packs of 6 bottles of Coca Cola for 25 cents, which is then sold for 10 cents a bottle. A very good profit for an entrepreneur six years.

With only 16 years, and together with other fellow of the Institute, he founded the Wilson Coin-Operated Machine Company which based its business on repairing pinball machines and then installs them in different places. The first purchase was made for $ 25 and after installing the machine that night had already raised $ 4 and that was the beginning of his meteoric career as an entrepreneur. With the money generated by this business bought a farm in Nebraska for $ 1,200. It is also engaged in collecting and selling golf balls and delivering newspapers, which earned him a total of $ 9,000 with which he paid his studies at the University of Nebraska.

Warren Buffett learned the basics of finance at the Wharton Business School, Pennsylvania and earned a degree in economics from the University of Nebraska. While at this university had access to the theories of Benjamin Graham by reading his book "The Intelligent Investor", this reading would mark a turning point in his career. He was fascinated by the stock market theories and he decided to complete his studies with a Master's of Columbia Business School to attend their classes. After finishing the Master in Columbia, Warren offered to work without pay salary in investment firm Graham-Newman, being rejected so he returned to Omaha to work at the brokerage firm of his father.

Despite the rejection of the firm Graham-Newman, Warren and Benjamin stayed in touch and in 1954, the teacher offered students the opportunity he craved finally came the opportunity for young Warren Buffett, a position in your company brokering Graham-Newman as a stock analyst, since Buffett retained for 2 years, after this period he decided he had learned everything we needed and returning to his native Omaha in 1956 founded an investment firm with $ 100,000 from friends and relatives. The agreement with its investors was to manage the assets received, Warren receiving 25 percent of the profits plus 6 percent annual management fee and management objective was to beat the Dow Jones Industrial Average (DJIA) index an average of 10 points per year. One of the clauses of the business was based on the complete lack of transparency in assets under management, which in modern times would be unthinkable. The result of the management was a success, both for investors to pocket Warren Buffett, who earned about $ 25 million

Berkshire Hathaway

In 1965, Warren Buffett bought Berkshire Hathaway textile company located in Massachusetts, company by then mismanaged and losses. Warren Buffett acquired the shares at 7 cents and though he never managed to make the textile business profitable firm, Berkshire Hathaway use as an investment vehicle for other investments for the rest of his days as an investor, as when in 1969 he ended his time as asset manager, he retired as President of Berkshire Hathaway, which begin to take shape fortune today is its empire, valued at about 40,000 million dollars and is almost entirely invested in that company, the general meeting of shareholders becomes a massive event attended by more than 15,000 shareholders each year and is considered by many

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