.png){kind=small}
Warren Buffett: From Paperboy to Investment Legend
In the heart of Omaha, Nebraska, a young boy with an extraordinary gift for numbers and an unusual fascination with money was laying the foundation for what would become one of the greatest investment success stories in history. Warren Edward Buffett, born on August 30, 1930, during the Great Depression, would grow up to become not just the world's most successful investor, but a beacon of financial wisdom and philanthropic generosity.
From his earliest days, Warren displayed an uncanny ability to think about money differently than his peers. At an age when most children were trading baseball cards, six-year-old Warren was buying six-packs of Coca-Cola for 25 cents and reselling individual bottles for 5 cents each, making a five-cent profit on each pack. This early venture was just the beginning of his entrepreneurial journey.
By age 11, Warren made his first investment in the stock market, buying three shares of Cities Service Preferred at $38 per share. The stock quickly dropped to $27, testing young Warren's resolve, but he held on until it recovered to $40, selling for a small profit. This early experience taught him a valuable lesson about patience in investing – a lesson he would later say was crucial to his success. Had he held onto those shares longer, he would have seen them rise to $200, another early lesson about the power of long-term investing.
The teenage years saw Warren's business acumen flourish. He ran successful paper routes, filed his first tax return at age 14 (claiming his bike as a $35 business expense) and with his friend purchased a used pinball machine for $25. They placed it in a barbershop and within months, they owned several machines in different locations. He sold the business for $1,200.
Despite his early financial success, Warren's path wasn't always smooth. He was initially rejected by Harvard Business School, a setback that led him to Columbia University, where he would study under Benjamin Graham, the father of value investing. This "failure" turned into one of the most fortunate turns in his life, as Graham's teachings would become the foundation of Buffett's investment philosophy.
After graduating, Warren worked briefly for his father's brokerage firm and then for Graham's firm in New York. In 1956, at just 26 years old, he returned to Omaha and started Buffett Partnership Ltd. from seven limited partners. His investment approach was simple but revolutionary: buy undervalued companies with strong fundamentals and hold them for the long term.
In 1962, Buffett began buying shares in a struggling textile company called Berkshire Hathaway. Though the textile business eventually failed, Buffett transformed Berkshire into a holding company for his investments. This decision would create one of the most successful investment vehicles in history. From 1965 to 2023, Berkshire Hathaway's stock grew at an annual average rate of 20.1%, compared to 10.2% for the S&P 500 with dividends included.
Some of Buffett's most notable investments include:
• Coca-Cola (1988): A $1.3 billion investment that's now worth over $25 billion
• American Express (1963): First purchased during the famous "salad oil scandal"
• GEICO (1976): Initially buying 1% of the company, eventually acquiring it entirely
• Apple (2016): His largest holding as of 2023, worth over $160 billion
What makes Buffett's story particularly inspiring is not just his financial success, but his approach to wealth and life. Despite being one of the wealthiest people in the world, he still lives in the same house he bought in Omaha in 1958 for $31,500. He drives his own car, eats at local restaurants and maintains a lifestyle that many would consider modest for a billionaire.
His investment philosophy, often called "value investing", is based on simple principles:
• Invest in what you understand
• Look for companies with strong competitive advantages
• Think long-term
• Be fearful when others are greedy and greedy when others are fearful
• Never lose money (and if you do, learn from it)
Perhaps most remarkably, in 2006, Buffett announced his intention to give away 99% of his wealth to philanthropic causes, primarily through the Bill & Melinda Gates Foundation. This decision has inspired many other billionaires to make similar pledges through the Giving Pledge, which Buffett co-founded with Bill and Melinda Gates in 2010.
The numbers tell an extraordinary story of wealth creation:
• Started with $100 in 1942 from his paper routes
• Became a millionaire in 1962 at age 32
• Reached billionaire status in 1990 at age 60
• As of 2024, his net worth exceeds $120 billion
• Berkshire Hathaway's market value has grown from $19 per share in 1965 to over $500,000 per share
But beyond the numbers, Buffett's greatest legacy might be his wisdom and teaching. Through his annual shareholder letters, interviews and speeches, he has educated millions about investing and business. His annual shareholders meeting in Omaha, known as the "Woodstock of Capitalism", draws tens of thousands of people from around the world.
"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." - Warren Buffett, American Businessman
Read more quotes by Warren Buffett
Related Story: Reed Hastings: Building Netflix, Breaking Boundaries
Warren Buffett's success isn't just about making money – it's about doing so with integrity, patience and wisdom. He has shown that sustainable wealth creation doesn't require complex strategies or insider knowledge, but rather disciplined adherence to sound principles and a long-term perspective.
As Buffett enters his nineties, his influence on the investment world and business community continues to grow. His story teaches us that success comes not from quick schemes or market timing, but from patience, continuous learning and unwavering ethical standards. From a young boy selling gum and Coca-Cola to becoming one of history's most successful investors, Buffett's journey reminds us that great achievements often start with small steps and simple principles.
The Oracle of Omaha's story isn't just about wealth accumulation – it's about the power of compound interest, both in money and in knowledge. As he often says, "Someone's sitting in the shade today because someone planted a tree a long time ago." Through his example, Warren Buffett has planted many trees under which future generations will find shelter and inspiration.
In a world focused on quick wealth and short-term success, Warren Buffett embodies the value of patience, integrity and continuous learning. His legacy will inspire future investors and entrepreneurs to not only seek profit but also create lasting value for society.
More Stories You May Like
