Warren Buffett the intelligent investor

 Warren Buffett the intelligent investor

Warren Buffett the intelligent investor
Warren Buffett the intelligent investor

Warren Buffett is one of the world's richest man. Buffett runs Berkshire Hathaway company. This is a flagship company and under his arm, there are about 60 companies. There are 15 companies of Warren Buffett in the Fortune 500.  Fortune 500 is considered as a company whose turnover is more than 10000 crores.

Time Table

So you can think of how much this man's administration will be. Obviously, there will be a lot of that. But this man has made a rule in his life.

That morning 9 to 6 pm I'm a businessman. 6 to 9 in the evening I am a member of the family. And at night 9 to 10:30 I am a spiritual being. Buffett split the time in his life very well. All of us should learn to manage time from the life of the Buffett.

0 To 1 Million $

Since childhood, the Buffett was interested in the maths.  He had made his first earning of selling Chewing gum. He used to bring chewing gum from his grandfather's shop and sell it to the people. After that, he started another business in which he used to sell cold drinks in a shop. He used to collect bottle lid of cold drinks. From this collection, they knew which drinks people used to buy the most. They discovered that people buy Coca-Cola most.

He used to take 6 packs of Coca Cola in 25 cents from his grandfather's shop and earning 5 cents of profit per pack, selling them. The children of his age were busy in sports but at the time the Buffett was making money.

From childhood, he got addicted to earning money and he realized that money could give him freedom. At the age of 10, he got something that he could reach his destination. Once he was roaming in a library, he found a book that was written in the book, Thousands of ways to earn thousands of dollars.

He picked up the book and started reading it and was surprised to read that book. Because there were many ways of making money in that book, many of these methods were impractical.

Buffett liked just one of those ways. Earn money by measuring people's weight from a weight machine He thought he would buy a machine and buy a new machine from a machine's profit. Soon he will have 20 machines and he will earn a lot of money by showing weight to the people. They thought that this is the idea in which they can be compounding.


The second idea of ​​the Book which he liked was compounding. It was written in the book that if you made $ 1000 and compound it on 10% rate then 1000 dollars would be more than $ 1600 in 5 years. More than $ 2600 in 10 years and In 25 years, it will be $ 10800.

Buffett bought his first Stock at the age of 11. Buffett had saved 120 $ at the age of 11, and with that savings, he partnered with his sister and bought 3,3 Stocks Of the city service, at that time the stock was trading at $ 38 But after taking stock, the stock fell to $ 27. Then their sister told them that you were wasting my savings. He used to feel bad after hearing this. But still he kept patience and when the stock came to $ 40, they sold the stocks and they got $ 6 profit But soon after this decision, he regretted that the share of the city service was up to $ 202.

Because of the buffing of Buffett's reading, he had read all books of investment in the Omaha Public Library. But all those books were a book that they especially enjoyed and that was the intelligent investor. Whose author was Benjamin Graham Who went ahead to become Buffett's hero and mentor.

Value Investing

As soon as they learned that Benjamin Graham was teaching at the University of Columbia, he applied to the University of Columbia and got his admission. From Benjamin Graham, he learned Value Investing, which was a simple idea. First, buy the company at a lower price than their real value. And when the company returns to its original value, sell it. Suppose a company's value is $ 100 and if you get it in 50 $ today, then you should sit down and take it when it comes to its original value 100, then you should make profits by selling it.

This simple idea of value investing proved to be good for him. In 19556, Buffett decided to open his partnership Then he was only 25 years old. Buffett started with just $ 105100, in which he had 7 partners with most of whom were members of their close family.  Buffett was not charging any management fees in his partnership. He was taking 25% of the return he earned on 6%. And he was also ready to share the loss. Coming in 1962, he had become a million. The total value of the partnership increased from $ 105100 to $ 7 million. $ 7 million worth of partnerships were $ 1 million of Buffett, so at the age of 32, Warren Buffett had become a millionaire.

Berkshire Hathaway

In the course of his cigar butt investment, Buffett bought a textile company. Berkshire Hathaway.  The main business of that company was not so good but the price was so cheap that the Buffett took his shares, eventually, he had so many shares that the company's control came into his hands and he became chairman of Berkshire Hathaway. He tried to improve the company's business but could not improve the company's business.

 After all, he started investing in other company by selling the company's parts. Going forward, Berkshire Hathaway's original business was tied up, but Buffett invested the money of that business to make so much money that the company's main work had become an investment. Even today, most of the Buffett's wealth is in Berkshire Hathaway.

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