Warren Buffett (born the August 30th 1930) is a business man and American investor .
Called “the oracle of Omaha”, it garnered an enormous fortune coming from its investments through its company Berkshire Hathaway, which it holds to 38%. With an estimate of 52 billion Dollar S In 2007 (against 44 billion in 2004), he is the second richest man of the world behind Bill Gates, according to Forbes .
Biography
Warren Edward Buffett was born with Omaha, in the Nebraska. His/her father, Howard Buffett, was stockbroker and member of the Congrès. Buffett studied with the Université of Nebraska and had a master in economy with the Université Columbia. It turned over to Omaha in 1957 and started to manage stock exchange wallets, by gathering the money of his friends and knowledge, of his family as well as his. Since 1969, its investments carried out Plus-value S from almost 30% on average and per annum, in a Marché where the average was from 7% to 11% and where all that was beyond was exceptional. Under the direction of Buffett, Berkshire exceeded the references of the markets such as S&P 500 and the Dow Jones during more than forty years (this is an exceptional performance when it is known that more than 80% of the investors do not beat their market index).He married with Susan Thompson in 1952. They separated in 1977 but never divorced. This important shareholder of Berkshire Hathaway and member of the Board of directors died on Thursday, July 29, 2004 of an heart attack. Buffett lives with Astrid Menks, her last partner since the separation of with his wife. It has three children. Warren Buffett clearly did not name yet his successor with the head of his company but it poured a great part of its fortune to a charity work, the Fondation Bill & Melinda Gates, like made her friend Bill Gates.
Its investments
One of its first investments was in American Express. Among the companies in which it invested, there was Berkshire Hathaway, a company of textile of New Bedford. Buffett liquidated thereafter the activity in the textile (1985) but kept the name and transformed the company into funds of investment (since 1969), in particular in the sector of the Assurance, which generated a regular gross margin of Autofinancement for more investment. In 2003, Berkshire Hathaway held approximately forty companies which employed: 150000 people.Buffett with the practice to concentrate its investments in companies underestimated with a good potential of growth in the long run. The identification of such companies is the difficult part. The actual value produced by these companies of which he is owner is higher than its stock exchange investments, although its share in companies such as Coca-Cola, whose Berkshire Hathaway is the largest shareholder, and Gillette draw more the attention. He affirms that it is thanks to its mental that he succeeds in the life and therefore it avoids the companies of High technology, not because they are not in themselves gravitational, but because it prefers to invest in sectors that he includes/understands.
Through Berkshire Hathaway, he is also owner of reinsurance and insurance companies like Geico and General Re which generates substantial funds (" Float") derived from their premiums of insurance. These companies are sources of funds which it then allocates with the Filiale S of Berkshire Hathaway and which it uses to acquire of the new companies. Warren Buffett is the principal shareholder of the railroad company Burlington Northern Santa Fe (BNSF) of which it holds 11%.
Continuous Buffett of living in the house of Omaha, in Nebraska, which it paid: 31500 dollars in 1957.
In addition to being an important investor in Coca-Cola, he is also a fan of their products. In its letter with the shareholders of 1991, Buffett says that he drinks five quills of Cherry Coke per day.
Its vision of the investments and the economy
With regard to its personal life, it is a famous treasurer. He is paid only 100 000 dollars each year by Berkshire Hathaway, according to its own choice. Its volume of net income available comes from its other personal investments apart from Berkshire, though they constitute less than 1% of its total net amount (Berkshire did not pay dividends since decades). It makes donations through the “ Buffett Foundation ”, usually around 12 million dollars per annum. It indicated its intention to distribute 99% of its fortune, after its death, for good causes. In June 2006, it indicated that the majority of its fortune of 44 billion dollars would go to the Fondation Bill & Melinda Gates.Buffett believes that most of the problems of the economy of the the United States and other industrialized countries, these last years, result from the proliferation of the people and the organizations which do not produce anything directly but which compensates by the volume of businesses that they treat. It estimates that the majority of the sales of action is related to recommendations of analysts made mainly with the advantage of the analysts themselves rather than of the investors. He immutably refuses to duplicate (" split") the actions of Berkshire Hathaway because that would facilitate their trade, which it does not wish.
He declares that he sees the investors of Berkshire Hathaway like partners and hopes that they regard their investment as in the long run or perpetual; he discourages those which have a short-term vision to invest in Berkshire Hathaway.
Buffett was known a long time to be an pro-attacker and it is generally favorable to the visions of the democratic party. Indeed, it was very critical towards the fiscal policy of the administration of George W. Bush and was announced as economic council in the presidential campaign of John Kerry of 2004. Buffett affirms that the fiscal policy of Bush charges the middle-class wrongfully. Its standpoint in favor of the death duty gave him a reputation of progressist. However, it is also to advise republican Gouverneur of California, Arnold Schwarzenegger.
Its succession with the head of Berkshire Hathaway
Its principal associate in businesses is Charlie Munger. It is possible that it succeeds Warren Buffett but that could be problematic because he is 6 years old more than him.Buffett writes the letter with the shareholders included in the annual report of Berkshire Hathaway (available free in English on Internet site of Berkshire Hathaway).
Its gifts
Warren Buffett announced Sunday June 25th 2006 his intention to give some 37 billion dollars, that is to say 29,6 billion euros, with the Fondation Bill & Melinda Gates and with members of his own family. This decision, which relates to more than 80% of its fortune, constitutes the largest individual donation ever carried out with the the United States preceding very largely the others philanthropists of the history.It also takes part in many other gift campaigns, of which a for example auction of a Ukulélé, instrument whose Warren Buffett is a large amateur.
Works
Writings of Warren Buffet, ED. Valor
The wallet of Warren Buffet, ED. Valor
Warren Buffet, the intelligent investor, ED. Eyrolles
Quotations
“All goes very well for the rich person in this country, us were never also prosperous. It is a war of classes, and it is my class which is gaining”
“If a company succeeds, its stock exchange courts will end up following. ”
“You are not right because others are of agreement with you. You are right because your facts are exact and that your reasoning is right. ”
“Our goal is to discover extraordinary companies at ordinary prices and not of the ordinary companies at extraordinary prices. ”
“With the Stock Exchange, there are two fundamental rules to respect. First is not to lose, second is never not to forget the first. ”
“what we do is with the range of everyone. It is quite simply not necessary to make extraordinary things to obtain extraordinary results. ”
“I want to be able to explain my errors. This is why I make only things that I include/understand. ”
“When one is in a hole, the worst thing to be made is to continue to dig. ”
“When a leader with a reputation of excellence attacks a company with a reputation of mediocrity, it is the reputation of the company which remains intact. ”
“the good jockeys of course make the good horses, but anything on the nags. ”
“Somebody assoit in the shade today because someone else planted a tree a long time ago. ”
“never ask a barber if you need a haircut. ”
“Better is worth to be right roughly than to be precisely wrong. ”
“It is when the sea is withdrawn that one sees those which bathe naked. ”
“the forecasts say some to you much on those which do them, it do not say anything to you on the future. ”
“In the business world, unfortunately the back mirror is increasingly clearer than the windshield. ”
“the majority of people are interested in the actions when everyone is interested in it. The moment to buy is when nobody wants to buy. You cannot buy what is popular. ”
“If ever you find yourselves in a boat which runs, energy to change boat is more productive than energy to clog the holes. ”
“a very rich person must leave sufficiently with his/her children so that they do what they want but not enough so that they do not do anything. ”
“the system of the taxes completely deviated in favor of the rich person with depends on the middle-classes during the 10 last years. It is dramatic”
Player of bridge
Warren Buffett is also known to be a player of Bridge. It sponsored besides a tournament which bears its name, Warren Buffett Bridge Cup
References
See too
| Random links: | Lapse | Chilomonas paramecium | Appilly | October 6th in the railroads | Julia (girl of Jules César) |