Warren Buffett

Looking at the list of the richest people in the world, you will easily come across such a world- famous name as Warren Buffett.

Buffett is the living embodiment of every investor and trader's dream, a man who, thanks to his intelligence and skill in choosing potentially profitable stocks, was able to reach global heights.

Today, his net worth is estimated at over $72 billion, but if you met this man on the street, you would never guess his wealth.

Warren Buffett is not just a man who has achieved success, but an example of a true long-term investor who dispels all possible myths about the weak effectiveness of long-term investments in favor of speculative operations.

Incidentally, Buffett is extremely negative about speculation, which is why you'll often hear him refer to such people as "thieves." He may be wrong in some ways, but by learning about his success story, you'll learn the circumstances that shaped his principles and how he rose from dizzying heights.

Warren was born into a prosperous family of a future Republican congressman in the small town of Oklahoma City, Nebraska, in 1930. His father was a broker and an active member of the Republican Party, so his father's profession speaks volumes about the family's wealth.

Even as a child, Buffett was called a child prodigy because of his strong memory and ability to solve complex equations in his head. Looking ahead, it's worth noting that Buffett never used a calculator, and even now, when he handles millions of transactions, he doesn't need one.

Warren made his first attempts to earn money at the age of six. His grandfather owned a small grocery store, where the young investor bought six cans of Coca-Cola for 25 cents and sold them retail for 6 cents each. Thus, Buffett earned his first 5 cents and gained an understanding of the world of finance and business. When Warren turned 11, he tried his hand at investing, buying two shares for himself and his sister at $38 each.

This opportunity arose thanks to access to the stock market through his father's brokerage firm. However, the very next day, the stock price plummeted to $27 per share, and for the first time, Warren feared losing not only his own money but also his sister's. After waiting a couple of days, when the price rose to $40 per share, Buffett sold all his shares, making a profit of $2 per share.

The most interesting thing is that a couple of days later, the stock price soared to $200, and it was from this incident that Warren learned a lesson: don't panic, but wait and be confident in your investment. Afterward, the boy retired from the stock market and got a job delivering newspapers. Buffett was so smart and enterprising that he began earning twice as much as his boss delivering newspapers, thanks to the fact that he was able to optimize his route and distribute to more addresses.

Having accumulated his initial capital, Buffett began selling slot machines. More precisely, he bought broken machines, restored them, and installed them in various establishments. This is how Buffett was able to establish a successful business and earn his first $10,000.

At that time, the successful businessman enrolled at Columbia University, where the renowned investor and stock market shark Benjamin Graham taught. The two men never found common ground; constant arguments and confrontations only fueled a negative relationship. However, Graham appreciated Warren's knowledge and gave him the only excellent grade.

After graduating, Warren tried to work for Graham, but Graham refused. A year later, however, Graham himself invited Warren to work for him, and Warren, in turn, proved during his six years with him that his vision of investing was far superior and more productive. 

In just six short years, Buffett earned $140,000 and opened his own fund. The fund was so successful that the money flowed in, and his main principle of investing in companies with strong management teams paid off handsomely.

After 12 years, the fund's assets were valued at $102 million. Buffett invested only in companies he personally liked. For example, if he liked Coca-Cola, he'd buy shares; if he enjoyed reading the Washington Post, he'd buy shares.

Warren Buffett's most successful investment, which made him a billionaire, was in the insurance business. He acquired five of the largest insurance companies, making him one of the richest people in the world. Buffett is not only a great businessman but also a philanthropist, as in his will, he left 99 percent of his inheritance to charities.