Warren Buffett

Background

Businessman. Investor. Philanthropist. The “Oracle of Omaha.” These are all titles used to describe investing legend Warren Buffett.

Buffett is the CEO of the world’s largest holding company, Berkshire Hathaway, and is largely considered the most successful investor in history. His philosophy and decisions are widely followed by others in the industry, and Berkshire's shareholder letter is eagerly anticipated each year.

Early Life and Career

Born in 1930 in Omaha, Nebraska (where he still resides), Buffett bought his first stock at age 11 and made his first real estate investment at age 14. At 16, he was accepted to college at the University of Pennsylvania's Wharton School, though he transferred to the University of Nebraska after two years.

Following undergrad, Harvard Business School famously rejected Buffett’s application—a decision he credits with pushing him to earn his master's in business from Columbia University. There, he studied under Benjamin Graham, the “father of value investing.”

Buffett’s actual father was a US congressman—Buffett went on to work at his brokerage firm after graduation. He then worked under Graham for a few years in New York before moving back to Omaha and starting his own company, Buffett Associates.

In 1965, Buffett took over Berkshire Hathaway after purchasing enough of its dying stock. It was originally a textile company, but Buffett transformed it into the most successful holding company in the world, liquidating its textile assets and instead investing in insurance companies. From when he took over through the 1990s, Berkshire Hathaway's stock rose between 10%-20% every year.

As of 2024, Berkshire Hathaway owns corporations like GEICO, Duracell, and Dairy Queen, and holds investments in Apple, Coca-Cola, Bank of America, and many other enormous companies. The holding company has one of the highest-valued stocks in history due to its collection of successful companies. In 2024, its Class A shares were sold for more than half a million dollars each (see its current market cap and cash on hand).

Buffett’s current net worth, as of Dec. 20, 2024, is about $140B, making him the eighth-richest person in the world. Track Buffett’s real-time net worth here—it fluctuates daily.

Philosophy and Impact

Buffett’s core investing philosophy is rooted in value investing, a strategy in which investors buy stocks and companies they believe are currently being sold for less than what they’re actually worth, judging by metrics such as earnings per share. However, his investing philosophy has evolved over time—today, Buffett focuses on investments that he deems fairly priced.

Buffett has also historically invested in companies that he believes are already well-managed and in industries he already understands. To Buffett, he is investing in a company, not a stock, with the goal of maintaining the investments over long time horizons (see his top investing tips here).

Although Buffett is one of the wealthiest people alive, he still lives in the home he purchased in 1958 for only $31.5K.

In 2010, he pledged to donate 99% of his money during his lifetime or at death. His donations have primarily gone to the Bill & Melinda Gates Foundation. In 2010, Buffett and the Gates family created the Giving Pledge, which encourages other affluent individuals to donate their money.

In 2011, President Barack Obama awarded Buffett the Presidential Medal of Freedom for his commitment to philanthropy and his impact on investing. And in 2012, a proposed tax rule to increase taxes on the wealthy was named after Buffett.

Technology

Buffett has been famously hesitant to invest in tech. During the dot-com boom in the 1990s, Buffett was criticized for staying away from investing in tech stocks because he wasn’t confident in the future growth of the tech industry.

Critics have said he was hesitant because he didn’t understand tech. In some interviews, Buffett has admitted he missed out on gains from not investing in companies like Google and Amazon earlier. He now invests in some tech companies, like Apple.