Powerful Ideas
Growing up Warren Buffett knew he would be able to make a lot of money. He even had an argument with his father, insisting that he did not have to go to post secondary education in order to fulfill this dream. He was making quiet the money for a high school student with a total of $40, 000 an month in today's money.
His plan while attending University of Nebraska was to meet his idol Benjamin Graham, which he did, and had a very close teacher student relationship with him. He learnt everything about doing business from him. He sometimes judged his professors with his own ideas but in the end both ideas would make sense at the end.
Warren Buffet was the type of person to invest in more and more companies even though he did not have too, but he was not a typical rich snob, he did it mostly for the love of business and investing. He encouraged many kids to start making money, and study business, so they can end up being like him.
His plan while attending University of Nebraska was to meet his idol Benjamin Graham, which he did, and had a very close teacher student relationship with him. He learnt everything about doing business from him. He sometimes judged his professors with his own ideas but in the end both ideas would make sense at the end.
Warren Buffet was the type of person to invest in more and more companies even though he did not have too, but he was not a typical rich snob, he did it mostly for the love of business and investing. He encouraged many kids to start making money, and study business, so they can end up being like him.
Management Ideas/Philosophies
Warren Buffet was different then many investors at the time. He had many different management ideas and philosophies that always worked in the best ways. He was called the Wizard of Omaha or the Oracle of Omaha, and is very well known because of his value of investing philosophy, even though he was very wealthy.
Warren Buffett descends from the Benjamin Graham school of value investing. Value investors look for securities with prices that are quality low based on their real worth. Warren, like a bargain hunter, would seek products that are beneficial and of high quality but under priced. Warren was never concerned about the supply and demand of the stock market. He was interested in long term investment. He chose companies that had good profits but whose stocks were undervalued and reasonable priced.
Here are some of his philosophies of investing:
One of his most important philosophies was looking for certain traits in one company before investing, these traits were:
Warren Buffett descends from the Benjamin Graham school of value investing. Value investors look for securities with prices that are quality low based on their real worth. Warren, like a bargain hunter, would seek products that are beneficial and of high quality but under priced. Warren was never concerned about the supply and demand of the stock market. He was interested in long term investment. He chose companies that had good profits but whose stocks were undervalued and reasonable priced.
Here are some of his philosophies of investing:
- He only invested in companies that sold goods and services that people needed, he never and always refused to invest in computers, software, and internet based companies.
- Warren Buffett's philosophy was to get to know companies from the inside
also invest in certain businesses he liked, for example if he like the CEO of the company or the employees he will invest in that company. He
believed that a strong executive with imagination and enthusiasm could have a
major impact on the company’s profitability. Example: When he bought Buffalo Evening News in 1977, the CEO of the company Katharine Graham initially worried Buffet was planning on taking over her position however when the two met Buffett encouraged her to do her best as the CEO of the company.
- He never told anyone about good investment deals, he kept it to himself. By doing this he thought he could keep the best opportunities for himself and the more successful he will become, which he did.
- He was the boss and his partners could not ask questions about how their money was being invested or information on the company was is going to invest in. He also kept transactions secret, and there were no commissions, because he would get majority of the money.
- When people started to buy stocks he would sell them. He believed this was this was the best way to increase profit. In 1963, he took over American express for $13 million at the time and sold it for $33 million when people started to buy stocks. Also, he sold the 30% of the Disney stocks he owned right after Disney expanded into Florida.
One of his most important philosophies was looking for certain traits in one company before investing, these traits were:
- Brand name - how well its known
- How old and experienced
- Profitability