LIFE OF AN ENTREPRENEUR

“ WARREN BUFFET ”
By:
1.Vikas
2. Avadhoot K
3. Ravi Metri
4. Madhu K
 Entrepreneur
Name : WARREN EDWARD BUFFET.
Also known as “Oracle of Omaha”
Entrepreneurship :
Chairman and CEO of Berkshire Hathaway,
with its headquarters in Omaha
Date of Birth : Aug 30, 1930.
Age : 80 and still counting...
 Buffet still lives in $31,500 house which he
bought in 1957

In spite of his incredible wealth, Buffett remains a

humble man who still lives in the house he bought
in 1958 in Omaha, Nebraska.
 Childhood days
He Steped into the Finance world at the age
11 years old and showed interest in making
and saving money by :
 Door to door selling
 Chewing gum
 Coca Cola
 Weekly Magazines

 Worked in his grandfathers grocery store

 Delivered newspaper
 Education
1. In 1947, Warren Buffett graduated from High School. It was never his
intention to go to college, he had already made $5,000 delivering newspapers
(this is equal to $42,610.81 in 2000).

2. His father had other plans, and urged his son to attend the Wharton
Business School at the University of Pennsylvania. Buffett stayed two years,
complaining that he knew more than his professors. When Howard was
defeated in the 1948 Congressional race, Warren returned home to Omaha and
transferred to the University of Nebraska-Lincoln. Working full-time, he
managed to graduate in only three years.

3. Warren Buffett approached graduate studies with the same resistance he

displayed a few years earlier. He was finally persuaded to apply to Harvard
Business School, which, in the worst admission decision in history, rejected
him as "too young“.
Warren applied to Columbia where famed investors Ben Graham and David
Dodd taught - an experience that would forever change his life
 Career
 Worked as a stock broker at Omaha
 Taught “Investment Principles” at
University of Nebraska
 Joined Banjamin Graham’s partnership
 His starting salary was $12,000
 Approximately $97,000 (Rs.45 lakh) adjusted
to 2008 dollars
 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
 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
 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.
 The Buffett Way

 Economic moat”
 Intrinsic value
 Do what is the best for you, not what
people think you should be doing.
 Buffet’s famous statements
 Rule No.1: Never lose money. Rule No.2: Never
forget rule No.1.”

 “The stock market is designed to transfer money

from the active to the patient.”

 “The most important quality for an investor is

temperament, not intellect.”

 "Risk comes from not knowing what you're

doing."
Thank you