ENTREPRENEURSHIP MANAGEMENT

LIFE OF AN ENTREPRENEUR WARREN BUFFET

Submitted By:Vinit Agrawal 457

WARREN EDWARD BUFFET

Oracle of Omaha
Chairman and CEO of Berkshire Hathaway, a conglomerate holding company with its headquarters in Omaha Aged 80

Childhood days
Showed interest in making and saving money
Door to door selling
Chewing gum Coca Cola Weekly Magazines

Worked in his grandfathers grocery store Delivered newspaper

Initial Investments
Bought a used pinball machine in partnership with a friend and placed it in a local barber shop In few months, the partnership had several machines in different locations Sold the whole business for a lump sum amount

Stock Market
At the age of 14 Warren Buffet made his entry into Share Market He invested the amount he received from selling his pinball machines into various companies and a farm By the time he finished his college he accumulated around $90,000 in savings measured in 2009 dollars, which will be more than Rs.40 lakhs

Career
Worked as a stock broker at Omaha Taught Investment Principles at University of Nebraska Joined Banjamin Grahams partnership His starting salary was $12,000
Approximately $97,000 (Rs.45 lakh) adjusted to 2008 dollars

Warren Buffet Six Principles

1 : Keep it Simple Principle 2 : Be a investor, not a trader 3 : Find outstanding business 4 : Make your own Decisions 5 : Leave a margin of safety Rule 1 : Never lose money Rule 2 : Never forget rule No.1 6 : Focus on strengths

Partnership Businesses
In 1956 Banjamin Graham retired Buffets personal savings were above $174000
above $1.2 million (Rs.5 crores) adjusted to 2009 dollar value

Started Buffets partnership Ltd Entered into various partnerships

As a billionaire
Net Worth US $45 billion (2010) Ranked second wealthiest in 2009 Currently ranked as third wealthiest Noted for his personal frugality despite his immense wealth Have pledged to give away 99% of his fortune for philanthropic causes primarily via Gates Foundation

Buffet still lives in $31,500 house which he bought in 1957

Berkshire Hathaway
Buffett eventually ended Berkshire Hathaway's textile involvement, but kept the name itself for what became his portfolio of companies. He began to invest in majorly undervalued companies such as Coca-Cola, the Washington Post, and American Express. Today, Berkshire Hathaway owns large holdings in many previously undervalued companies that have become major players in the market.

Philanthropist and humble man

In spite of his incredible wealth, Buffett remains a humble man who still lives in the house he bought in 1958 in Omaha, Nebraska. He has and plans to continue to give much of his wealth away to charity, much of it while he is still alive. Most of this money will go to the foundation friend and fellow billionaire Bill Gates has set up.

Thank You