Warren Buffet is a renowned American investor and businessman. He is as popular for his frugal lifestyle as he is for being a billionaire.
Warren Edward Buffet was born on August 20, 1930 in Omaha, Nebraska. His father, Howard, was a successful stockbroker.
Buffet purchased his first stock at age 11; he bought shares in Cities Services for $38 each and sold them at $40 each. Years later, the shares were selling for $200 each which taught the young investor a lesson in investing money long-term in reliable businesses.
At age 13, Buffet filed his first income tax return where he wrote off the purchase of his bicycle as a business expense.
Buffet received his undergraduate degree from the University of Nebraska. For his masters, Buffet applied and was rejected by Harvard University. Consequently, he studied at Columbia University under Benjamin Graham. Graham was and still is a huge name in the world of investment and economics. Buffet earned Graham’s first and only A+ in his security analysis class.
After college, Buffet returned to Omaha to work for his father. He went on to buy stock in GEICO, but visiting the headquarters beforehand and received a crash course on the insurance business.
In 1952, Buffet married Susan Thompson. The couple had three children, Susie, Howard, and Peter, but separated in 1977. However, Buffet and Susan never divorced and were legally married until her death in 2004.
In 1954, Buffet left Omaha to work for Graham-Newman and again worked closely with Benjamin Graham. He learned a great deal on conservative investing, but he left due to various conflicts.
When Buffet returned to Omaha in 1956 he founded Buffet Partnership Limited. The company made 30-percent gains each year, while others averaged only 7 to 11 percent. Buffet Partnership Limited eventually controlled the majority of shares in Berkshire Hathaway.
Buffet is still chairman of Berkshire Hathaway and receives only $100,000 a year for his work. He still lives in Omaha, hence his nickname “Oracle of Omaha.” He shares a house he purchased in 1957 for $31,500 with his partner Astrid Menks. He is a huge investor in Coca-Cola products.
In 2005, Forbes Magazine named Buffet the No. 2 Richest Person in America (with No. 1 being Bill Gates) and estimates his worth at $40 billion.