BUSINESS MANAGEMENT

&
ORGANIZATIONAL BEHAVIOUR
CIA 1
FAMOUS PERSONALITY
AND
THEIR IMPACT ON THE ORGANIZATION

AKSHAY SUBRAMANIAN K (2212707)

ALEX PETER (2212708)

ALLAN SEBY TRAVASSO (2212709)

ANSH SEHGAL (2212710)

ARDHENDU MOULI DEY (2212711)

ARPIT SHARMA (2212712)

Introduction to Warren Buffett
Warren Edward Buffett, the most successful investor in the world, an amazing leader, and a
great philanthropist, was born on August 30, 1930 in Nebraska. Buffett is Currently the CEO
of Berkshire Hathaway and has a net worth of $97 Billion making him the seventh richest
person in the world.
Buffett developed an interest in business and investing at a very young age. He did his
schooling from Wharton School of the University of Pennsylvania till 1947 and completed
his schooling at University of Nebraska at the age of 19. Buffett then went on and graduated
from Colombian Business School, he then also attended New York Institute of Finance to
learn more about business and investing. While he was in Colombian Business School he got
pioneered by Benjamin Graham on the philosophy of investing and then after attending the
New York Institute of Finance he started a business partnership with his pioneer Mr Graham.
He created his first firm Buffett Partnership Ltd in 1956 and eventually acquired a textile
manufacturing company called Berkshire Hathaway.
Buffett also known as “oracle” or “sage” of Omaha, has pledged to give away 99 per of his
fortunes for philanthropic causes. He is not just an excellent leader and philanthropist but also
an excellent person who likes to use his fortunes for societal developmental cause, he has be
a consistent and a huge donator, and is a prestigious member of many of the big Foundations
like Bill & Melinda Gates and others

Early Business life

Warren Buffett has always been enthusiastic about investing and had a dream of Working in
the Wall Street, but his dream of working at Wall Street was not entertained by his father.
After denial from father, Buffett started working as a stockbroker in Omaha and attended
public speaking course from Dale Carnegie. After completing his public speaking course he
started taking classes on “investing Principle” at the University of Nebraska where he had to
teach students twice his age. In 1954 Buffett accepted his first job at Benjamin Graham’s
Partnership Ltd with a salary of $12000 per year. After working at Graham’s Partnership for
two years he started his own company called Buffett Partnership Ltd as Benjamin Graham
retired and closed his firm. By 1957 Buffett was operating three Partnerships and in span of 3
years he increased it to seven Partnerships and made a huge profit by investing just mere
$100 in the investment. After working In Partnership Ltds for 11 years of his life, he was able
to buy Berkshire Hathaway at 1965 and started a new journey as being a CEO and helped the
company to reach new heights in the market.
Story of Berkshire Hathaway aka The Oracle of Omaha:
Berkshire Hathaway is a holding company for different kinds of businesses, like GEICO and
Fruit of the Loom. Founded in 1839; 183 years ago. The company is run by CEO Warren
Buffett. Berkshire Hathaway has its headquarters in Omaha, Nebraska.
Berkshire Hathaway has its roots tracing way back to the textile manufacturing company
established by Oliver Chace in 1839. He had worked previously under Samuel Stater, who
was the founder of the first successful mill in America. In 1929, the Valley Falls Company
merged with Berkshire cotton manufacturing company which originated in 1889 in Adams
Massachusetts. The combination of these two companies was known as Berkshire Fine
Spinning Associates. Then fast forward to 1955, they merged with Hathaway manufacturing
company.
In 1962, Warren Buffett who had a keen eye for the prices of stocks started buying stocks in
Berkshire Hathaway after noticing a pattern in the price direction of its stock whenever the
company closed a mill. He noticed that the textile business was declining and the situation of
the company was not going to improve. Buffett decided to buy more of the so that he can
have more control over the company and now the problem for him was that, he slowly
became an owner of a failing texting business. During the initial stages, he maintained the
core business of textiles.
He entirely sold off those assets to separate Berkshire from the textile sector. National Indem
nity was the first of several insurance companies that Buffett would buy for Berkshire Hatha
way, transforming it into a conglomerate and marking it as such.
The business increased its holdings to incorporate other insurance firms as well as businesses 
in the financial, apparel, entertainment, food and beverage, utilities, furniture, household goo
ds, media, materials, and construction industries.
The biggest investment Berkshire Hathaway has made, by far, is in Apple, the company discl
osed this year. 
Apple makes up more than 40% of Berkshire's portfolio of U.S. stocks, and it is a stock in wh
ich it has slightly over 5% of the total. 
Since Buffett famously shunned technology equities for many years, it's fascinating to note th
at he has just started investing in the company.
Some investors seek for value before buying stock in companies that meet their standards.
The strategy used by Berkshire Hathaway is comparable.
 However, it purchases the firm rather than just a few shares of the stock.
After employing that method of investing for many years, Berkshire Hathaway developed
into the enormous multinational company we are familiar with today.
When Hathaway started trading in class A shares in 1990, Warren became a billionaire.
Ironically, Buffet's biggest regret is also buying Berkshire.
By the end of 2007, "A-class" shares of Berkshire were trading for $150,000 each, and the
company kept to its tradition of not splitting its shares. This practise stemmed from Buffet
and Munger's preference for sustained long-term gains over risky short-term investing
strategies. With only 25 people working at Berkshire's corporate headquarters in 2017, share
values had reached a staggering $250,000 per share.
The growth story of Berkshire Hathaway is truly inspirational. From a totally deteriorating
textile manufacturing company, the company is now ranked 3rd in the Fortune 500 rankings
of the largest United States corporations by total revenue.
A share in Berkshire Hathaway costs $340,000 today if you want to purchase it (for Class A s
tock). As of March 1, 2020, its Class B shares are traded for a price of $205.In 2018, the com
pany's total yearly revenues were $247 billion, and its market cap was above $500 billion. In 
addition, Berkshire Hathaway is the world's top provider of property and liability insurance. 
In terms of revenues, it's ranked as the twelfth-largest firm in the world.
How does one account for all that achievement? 
According to Buffett, it is preferable to purchase a fantastic business at a fair price as
opposed to a fantastic business at a reasonable price.
In the past 60 years, Buffett and Berkshire Hathaway have successfully used this motto nume
rous times.
By itself, this makes Berkshire Hathaway one of the greatest business success tales, one that 
upcoming investors will read and study for years to come.

Personality of Warren Buffett

Warren Buffett is a reserved, orderly and practical person, he is self-sufficient, hardworking
to meet obligations and prefers to be alone or with group of close friends rather than
socializing with a group or a crowd of people
i) Introvert- Warren Buffett is an introverted person, an introverted person is a person who
is generally directed inward toward his own feelings and thoughts. Warren Buffett enjoys his
own company more than what’s happening externally or finds its more comfortable with
some selected people rather than socializing to a group of people

ii) Sensing- Warren Buffet is a sensing person which means he believes information that he
receives directly from external world. Warren Buffett is a very fact driven, and believes in
concrete and detailed information.

iii) Thinking- Warren Buffet is a thinking person he highly relies on objective information
in his life and he is a very critical thinker and he likes to evaluate situations and people based
on logic an facts and also focuses on problem solving when he is confronted with challenges

iv) Judging- Warren Buffett is a judging person which means he seeks closure from outer
world through organizing, planning and putting things in order. He likes to set goals and
achieve those goals with perfection, keeping things in order is also a very distinct part of his
personality

In a gist Mr Buffett is an analyst who believes in providing clear expectations and guidelines,
believes in inventions, appreciates facts and likes making decisions based on logical thinking

Characteristic traits of Warren Buffett

Leadership- The CEO of Berkshire Hathaway and one of the richest people in the world is
known to be classified as a transformational leader. He surrounds himself with capable and
trustworthy people and is normally hands free when it comes to his leadership approach and
does not interfere with their work for most of the time.

Hunger for knowledge- He believes that the greatest way of gaining knowledge is to read.
Reading helped in expanding his horizons and made him the person he is today.

Patience- The billionaire plays a slow game when it comes to investing and is a strong
believer of the virtue of patience. He has famously said “Value investors are not concerned
with getting rich tomorrow. People who want to get rich quickly will not get rich at all.”

Free thinking- Buffett believes that there are times where we should form our opinions from
our own thoughts and facts.

Frugality- Warren Buffett spends very little on things he doesn’t need. He never spends
more than $4 on breakfast and drives a 2014 Cadillac that has a retail price of $40,000
because he claims to only drive around 4000 miles a year.

Warren Buffett’s character’s impact on his business

He has a single-track mind when it comes to growing wealth and gives a 100% of his
attention to one thing at a time. He is not easily scared by market movements and he knows
that right time to purchase is when everyone else sells.
He sticks to what he knows best and does not take unnecessary risks. This is because he is
well educated and informed when it comes to investing and his years of experience make him
successful in his investing endeavors.
He tries to be the best at one thing and focuses on one project at a time. Buffett’s success
comes from the passion for his work. His consistent knack for identifying undervalued
companies to invest in is to be admired.
He plans ahead for the future so that he is not left in an awkward situation where he does not
know what to do next. While many investors are short-sited and think about the next quarter,
Buffett thinks about the foreseeable future. This radical departure from the short term mindset
is the reason why he is one the greatest investors that we will ever see in our lifetime.

His investments are diversified and long term. Warren buffet invests only in things he
understands he relies on his common sense when making investing decisions. He does not put
too much of his money into any one investment. This is called diversification and his holding
period is forever thus he follows a long-term approach when it comes to investing.
He is a ‘go-giver’: Warren Buffett’s truly outstanding factor is his largesse. He is an
incredible philanthropic. When such a giving person devotes their money, time and ideas they
end up yielding the benefits of their actions.

Key takeaways for us students from Warren Buffett

1. He doesn't let his ego get in the way.

That is due to his modest demeanour; we adore him for his devotion to cheeseburgers, banjo
playing, and the fact that he has spent 55 years in the same, modest home in unglamorous
Omaha. We are encouraged to believe that success is possible for everyone because he is self-
made and acquired 99% of his fortune after age 50. He also teaches us valuable lessons about
riches by leading a humble life focused on his family and charitable work.

2. He tries to be the best at one thing.

Laura Adams, a personal finance expert and host of "Money Girl," claims that Buffett
concentrates all of his efforts in one location.

Buffet's success, according to the expert, "seems to derive from enthusiasm for his
profession, outstanding mentors early in his career, and aiming to be the greatest at one thing
- his continuous talent for finding undervalued firms to invest in."

3. Hone your speaking skills.

Early in his career, Buffett was averse of speaking in front of an audience. He signed up for a
renowned course taught by Dale Carnegie since he understood that it would be essential to
attaining his goals. Today, he frequently advises aspiring business owners that success
depends on having great communication skills.

4. Minimize meetings.

Buffett decides to write each of his firms a letter once a year rather than holding regular
meetings. The letter describes his yearly objectives and highlights his achievements from the
previous year. Instead of clogging up his businesses with lengthy meetings and pointless
phone calls, he lets his employees spend their time working on their duties.

5. Research Before You Invest

Do your homework before making an investment. Before making an investment, Buffett

conducts in-depth study on each of his firms to ensure his understanding. He makes large
investments once he has determined that a stock is robust. He also favours businesses that are
simple to manage. Businesses that are "so simple that a fool can run them" are, after all,
generally safe investments—even when fools ARE in charge. Warren Buffett is open about
how he conducts research before making investments. Additionally, you can apply this when
you invest:

6. Judge yourself by your own standards

Never depend your choices, accomplishments, or even happiness on what other people think
or do. You don't have to swing at everything; you may wait for your pitch, says Buffet. The
issue with being a money manager is that your supporters constantly yell, "Swing, you bum!
Measure yourself by your "Inner Scorecard"—your own standards as opposed to the
standards of the world—instead of going along with the mob.

Conclusion
Based on the aforementioned study, we may draw the conclusion that there are key insights
and lessons we can learn from Warren Buffett's success as an entrepreneur and investor.
Knowing your limits, learning the necessary skills, removing emotions from the investment
process, capitalizing on emerging trends, working with great and experienced people,
calculating the risk involved, limiting your borrowing from others, knowing when to quit,
reinvesting your profits, and finally being willing to acknowledge your mistakes are a few
qualities that are absolutely essential for success in the field of investing and business. A
person can succeed in the area of investment and entrepreneurship if he possesses these few
traits and practices.