Many people believe that Warren Buffett - the best investors in the world, and rightly so.The man known not only in the United States, but around the world, lives in Omaha, Nebraska.He '73.It is the fifth largest state in the United States - by the end of 2012 amounting 46.5 billion. Dollars.But for all that large fortune is not gone to his head, he tries to live modestly.Warren reminds people that the money does not create man, but man - the money, and encourages others to live easier.The billionaire also urges countrymen to follow his example: do not chase the brand, and enjoy the things that are comfortable.
Why Warren Buffett like in the United States?
important fact characterizing him as a person, is a voluntary renunciation of 50% of the property (and this - about 37 billion. Dollars).These funds are one stroke of the pen, he does not hesitate to have listed in the US charities.So he responded to the call of Bill Gates in 2010 for wealthy Americans - to give half of his wealth a country that made them rich.That was the largest in the world and really impressive act of charity, an example for all the wealthy.Funds were transferred mainly to a fund managed by the spouses Gates: Bill and Mellindy.Without exaggeration, the entire country was deeply surprised by this man's actions before renowned for its frugality.It was really a patriotic act, responsiveness soul Buffett to attack the American Twin Towers terrorists.
It's really like in his native Omaha, he was a billionaire with a worldwide reputation, is not hidden from the people, he freely visited shops and other public places.
Once, when one of the schools Omaha faced with significant financial sanctions and the threat of closure, came to the rescue of an elderly couple of teachers of the same school.They are listed on the expense required several million dollars.Where did they get them?Teachers were among the first shareholders Buffett, then he entrusted his life savings - 25 thousand dollars.
Asked about how he understands what success in life, he said that the most important thing - it's about loving people, and how much you have in the bank is a cell - this is secondary.Such beliefs have really Warren Buffett.News, current events have little effect on his life values.Indeed, this smart and charismatic but wayward people love family and others.
Warren Buffett - known name in the business
transactions in the securities market more often - speculative.It is assumed, of course, buying shares at low prices and selling at a higher rate.Many people try to spend just two lightning fast operation, and - the most profitable.But the hero of this article did not go into its enrichment by speculation, it is said to experts, the "pure investor."His style is different: measure twice, cut once.Skate businessman - purchase of shares of promising companies that the market underestimates the subjective.This defect has the prospect to be corrected.Only the fact that Warren Buffett has invested himself in this company, increasing its reputation.He is respectful to companies - the object of their investments.His is a phrase that should be heard by all investors.It says that it is better to buy a wonderful company by paying a fair price than a fair company to buy at a great price.Principled morality business Buffett.Statements him testify to this.
securities he buys only from companies, just making sure that their real value is higher than proposed.Moreover, such actions are in its portfolio at least ten years.Companies operate stably, and the value of their shares at this time is increasing.He is not interested in short-term speculation, as opposed to George Soros.This position, of course, structural: the production received a boost to development.Compatriots are sure that stimulates the US economy its activities Warren Buffett.Photos of this worthy man often publish newspapers and magazines.He willingly gives interviews.This businessman and philanthropist love the country and have - for that ... After all, he essentially defended investment and criticized speculation.It calls on other businessmen not to cross the border between these concepts, to be "in the entire country", not just "for themselves."
Its principle - to invest in companies with impeccable management.So he studies not only their balance, but the industrial structure, as well as - the biography of managers.This investor resembles an agronomist, was looking for a proper ground to plant a seed in it.His favorite investment option - when the company through investment, continue to consistently develop.Therefore he selects undervalued assets.Describing how to choose a company for investment, Buffett said the words of his teacher, Ben Graham that sense appears when comparing prices (the one that we pay) and value (what we have).
If we look at Warren Buffett as a stock investor, his average annual income is only 24%.And it's in an area where it happens that the lucky ones, "snatch" the jackpot of 500%!How many Udaltsov with shiny single transaction seen Warren?But good luck to them - fickle lady, and the hero of this article it goes under the arm more than 50 years, leaving him alone.
Buffett is confident that all the time now being tested, but talking about it, as always, unbanal and figuratively, using the following comparison: at low tide becomes apparent who is swimming naked.
Why is it called "Oracle of Omaha"?
Everything he did in life, literally everything, to be successful.(Discussed in this article below biography of Buffett convince you of that.) His predictions strikingly true.All what he said publicly, is carefully analyzed.On Wall Street, no less weight than the word of the President of the country, is what Warren Buffett says.Quotations from his speech can even bring down the company.So, once speaking to their shareholders, he voiced the opinion that soon one of the largest reinsurance market will fall.Analysts analyzed the debt of different companies primary insurers, we have determined that it is - rated seventh in the world of the German insurance company Gerling Global Re.Statements Warren was sufficient to service this really unprofitable companies stopped using customers.
At the beginning of the new century, analysts wondered why Buffett does not invest in the development of modern technology?Journalists even mocked old-fashioned billionaire who does not use any computer or calculator (Warren defines a child benefit by multiplying two- and three-digit numbers in his mind).However, after a couple of years, the NASDAQ index of tech has become systematic decrease of investors suffered substantial losses.What it said Warren Buffett?Quotes on this occasion his laconic - "And I warned you ...ยป
In 2006, the famous investor predicted catastrophe in the US real estate market.To do this, he used "his" indicator - housing prices should not grow faster than costs.Events of 2007-2008 - a house, a mortgage purchased by citizens, was massively alienated from them for debt.
Concerned about the US budget deficit, he in 2003 and 2004.twice predicted the fall of the US dollar by investing a portion of their assets in other currencies.
first steps in business
His father was the owner of a brokerage company and a congressman.However, since childhood, Warren was trying to earn their money and do their work.His first deal was speculative boy bought the store with my grandfather a few cans of "Coca-Cola" and sold their house twice as expensive.Thus began the way Warren Buffett's business.At age 11, he first tried to play on the course, first bought and then sold three shares.Then he hastened to sell the shares because of the minimum income.However, the price soon rose to six times.There was no need to hurry.This was a lesson for Warren.
From the age of thirteen, he worked at the post office, carrying the Washington Post.The work was piecework and developed his system, he began to earn more postmaster.In the 15-17 years of age, along with a friend, they bought and installed in the city of three b / at the slot machines.For 17 years he had the funds in the amount of 5 thousand dollars, in terms of taking into account the inflation index was more than 40 thousand dollars.Warren was "charged" to earn money and become a millionaire in 30 years.But his father convinced him of the need to get an education.University of the District of Columbia brought him down with a prominent theorist of financial markets and investment Graham, who managed to interest his theory slender young man.The Tao of Warren Buffett was found!Now he knew that he would do in life - to invest.
Financial Market - calling Warren Buffett
After training, Warren began work manager in the company of his father.At 22, he married Susanna Thompson.Two years later, he organized on shares the company of friends and acquaintances.Then he had an experience in the company of his teacher, Ben Graham - investment fund "Graham-Newman," is located on Wall Street.At this stage, it already possesses a fortune of 140 thousand US dollars.In spite of the open perspectives, Warren makes a decision - to build your business.He returned to Omaha and being able to raise money for friends and relatives, the company bases its fund "Buffett Associates".Since the beginning of the 60 shares of the company for the first 5 years increased by 251%, while the average American stock market during this time "raised" by 74%.Next 5 years, this gap has increased over 156% in Warren invested companies and 122% - for the rest of the market.Childhood dream come true - he becomes a millionaire.Warren Buffett has established himself as a fine expert in mergers and acquisitions.He - a major investment in the insurance business of America.
second phase of his career began in 1969, when he proceeds fund Buffett Associates (and it is - 102 million. Dollars) invested in the ravaged textile company Berkshire Hathaway, thereby giving it the impetus to the development.An experienced analyst noted, on the basis of the assessment of assets, the real price per share was 20 dollars, while it sold for 8. But the textile business was not the end point, and intermediate base for these investments.Profits from the sale of products referred to them in the purchase of securities of the insurance companies.America at that time formed its insurance market, and significant financial incentives are the key to high profitability of the insurance business.A wise and far-reaching strategy of Warren Buffett chose.His biography as an investor on a national scale started from this stage, when the five largest insurance companies in the United States became his property.
In the future, was launched investment vehicle, based on the redistribution of premiums customers in these companies.For part of the received "advance" funds were bought bankrotyaschegosya "solid" companies.After receiving financial support, almost immediately they went out of the profit.Thus, due to profit skilfully invested enterprises, another source of funding received Warren Buffett.His biography testifies exchanged fifth decade, he became the owner of 28 billion state.
largest investment of the Oracle of Omaha
His investment of more than convincing.Inserting funds in undervalued companies gave a striking effect.Shares of Coca-Cola, he bought for 1.3 billion. Dollars rose to 13.4 billion US dollars;Gillette - 0.6 billion dollars - up to 4.6 billion. Dollars;and 0.01 billion. dollars invested in the newspaper Washington Post, - 1 billion. dollars.
billionaire also has a stake of 4.3% in the company McDonalds.
Note invests the man in what is familiar to him since childhood, and that close to him as a person.Recall (we have already talked about this) about the first six years of commercial experience Warren selling his parents six bottles Coca-Cola, bought from his grandfather.Moreover, the daily Oracle drinks five cans of "Cherry Coke".Or the newspaper Washington Post: Does not her young Buffett were transported by bicycle, receiving the first in the life of a decent income?Namely burgers are a favorite food of genius investor.
investment principles of Warren Buffett - thoughtful and successful that tested practices have long been well-known.They organically consistent with his principles of life.
Somehow along the way, gradually, in the management of Warren Buffett created "Essay on investment", which developed the ideas of Ben Graham.Initially, it was his business letters to shareholders conglomerate that has grown out of the textile company Berkshire Hathaway (and still continue to wear that name).The reason for the publication of this book purely practical: reasonable formulation of the author of the ideas of the financial market and the destruction of the existing myths there.Subtly reveals the nature of the investment and business building.The author emphasizes that meaningful investment is impossible without the proper auditing of accounting documents, analysis of economic life of the company.
purchasing the company, Buffett appoints its CEO, it defines the order of payment.This is - the only thing that he does, the investor.Operational management of the company Oracle of Omaha's business.The governance structure does not change.Appointed Director of them, stimulated by the opportunity to participate in the option of the company, he increased capitalization.
Life principles of the great investor
Firstly, the Oracle of Omaha says that wealth - a state of mind.If one associates with wealth, then he will become rich.
However, the success of man he is not associated with a bank account.It is important that he did what he liked, and there were people around who love it.It also encourages people to learn to spend less than you earn, not to get involved in consumer credit.He recommends spending time with people who are better than you successful, as it mobilizes you to further progress.The last of the principles of Oracle says that those who earn more should also give more.
He committed his company to such an extent that 99% of its equity holding in its shares.By the way, his colleague Charlie Munger, following his example, and invested 90% of his fortune in the stock.This, according to Warren, is the best guarantee of unanimity and unity of shareholders of Berkshire Hathaway and its managers, necessary for the efficient management of it.In 2004, after the death of his wife, Susan Buffett, the board entered a best friend Warren - Bill Gates.
should be noted feature of this company.For more than 40 years of its history, no action Berkshire Hathaway has not been sold.During this time the value of each share rose from $ 8 (remember when buying a textile company) to 90.5 thousand dollars.Shareholders of the company, not least thanks to the charisma of its leader, are not disparate business and elite club, single, monolithic, charged to work together.
He does not like computers.The house they had none.The only weakness of the Oracle of Omaha - private jets.
Thrift or greed?
He, despite his wealth, had not gone to live in a "state of millionaires" - California, not raised itself stagger the imagination of the real estate.While the tools allow him to build himself almost a city.House Warren Buffett on Farnham Street bought it in the 50s in his native Omaha for 34 thousand dollars.He basically does not receive dividends from the corporation that owns (Berkshire Hathaway).He lives on a salary, drives a second hand Lincoln.Dine in the same dining room, where they feed on, while still a clerk.
He dressed in traditional stores.One journalist asked snidely about the value of their costumes, he said, so that all of America laugh.As evident from his response, the costumes - very expensive, just look at it cheap.
surprising stinginess surrounding this man even to native children.When the son of Howard wanted to farm and came to his father with a request that he bought his farm, he set a condition: he buys - in his name, and his son rents his farm, while paying his rent.Daughter Susie once turned to him, asking a small amount, to pick up the car with paid airport parking.Of course, the money he gave, but asked his daughter to write a receipt to get 20 dollars.
