Warren Buffett was not born into extreme wealth, but he grew up surrounded by the world of finance. His father, Howard Buffett, was a stockbroker and later a congressman, but Warren didn’t just inherit an interest in stocks—he developed his own passion for business, numbers, and making money from a very young age.
Unlike most children, who spent their time playing, Buffett was fascinated by how money worked. At just seven years old, he borrowed a book from the library called One Thousand Ways to Make $1,000 and became obsessed with finding ways to grow money instead of just earning and spending it. This wasn’t just a phase—by the time he was a teenager, he was running multiple small businesses, saving every dollar, and even filing his own taxes.
Buffett’s story isn’t about luck or privilege—it’s about curiosity, patience, and an unstoppable drive to understand money better than anyone else. His journey from a boy selling chewing gum to becoming one of the world’s greatest investors is proof that success is built, not given.
Early Life and Entrepreneurial Ventures
Warren Buffett was born in Omaha, Nebraska, in 1930, at the height of the Great Depression. From the moment he could count money, Buffett was looking for ways to make more of it. At just six years old, he started his first small business—buying packs of gum and reselling them for a small profit. Soon after, he began selling bottles of Coca-Cola door to door, carefully noting how much he could earn from each sale.
By the time he was 11 years old, Buffett took his first step into the world of investing. With the money he had saved, he bought three shares of Cities Service stock for $38 each. When the price dropped to $27, he panicked but decided to hold onto them. When the stock finally rose to $40 per share, he sold, making a small profit. But Buffett later realized that if he had waited longer, the stock would have gone up to $200 per share. This early lesson taught him one of the most important rules of investing: patience pays off.
Buffett didn’t stop there. In high school, he was always looking for ways to make extra money. He delivered newspapers, making around $175 per month—a higher salary than some of his teachers. He also sold golf balls, stamps, and even detailed cars for additional income. One of his most creative ventures came in 1945, when he and a friend bought a used pinball machine for $25 and placed it in a local barber shop. Within months, the machine was making enough money that they bought more machines and expanded to multiple barber shops. Eventually, they sold the business for $1,200, a massive return on their initial investment.
Even as a teenager, Buffett was already thinking like a businessman. By the age of 16, he had saved over $5,000, a significant sum at the time, and had developed a deep understanding of how money could grow through smart decisions. While other kids his age were dreaming about becoming athletes or movie stars, Buffett was already setting his sights on building a fortune.
Educational Pursuits and Early Career
Despite his early success in business and investing, Warren Buffett knew that learning was key to long-term success. However, his education didn’t follow a straight path. At 16 years old, he enrolled at the University of Pennsylvania’s Wharton School of Business, but he wasn’t impressed. Buffett believed many professors focused too much on theory and not enough on practical investing, so after two years, he transferred to the University of Nebraska, where he completed his degree.
Confident in his abilities, Buffett applied to Harvard Business School, believing it was the next step in his career. But when he received a rejection letter, it was a humbling moment. Instead of being discouraged, he searched for other opportunities and soon discovered that his investing idol, Benjamin Graham, was teaching at Columbia University. Determined to learn from the best, Buffett applied and was accepted.
At Columbia Business School, Buffett found what he had been looking for. Benjamin Graham, known as the “father of value investing,” taught him the most important principle of his career — don’t chase quick profits, focus on a company’s real value. Graham’s famous concept, buying undervalued stocks and holding them for the long term, became the foundation of Buffett’s investment strategy. Buffett excelled in class, and his admiration for Graham grew so much that he later called him the second most influential person in his life after his father.
After graduating in 1951, Buffett wanted to work directly for Graham’s investment firm. But despite his skills and enthusiasm, Graham initially rejected him, advising Buffett to gain more experience first. Buffett returned to Omaha and worked at his father’s brokerage firm, spending his time analyzing businesses and refining his investment strategy.
In 1954, Buffett finally got his chance when Graham offered him a job at Graham-Newman Corp in New York. Working alongside his mentor, Buffett learned the discipline of value investing, watching how Graham selected stocks based on their financial strength rather than market trends. The experience was life-changing, but Buffett soon realized that he had his own approach to investing, one that wasn’t just about numbers but also about understanding a company’s potential.
When Graham retired in 1956, Buffett returned to Omaha with a new plan—he would start his own investment firm and manage money for others. He had no office, no big-name clients, and only a handful of investors. But he was determined to prove that his method worked. This was the beginning of a career that would eventually make him one of the richest and most respected investors in the world.
Formation of Investment Partnerships
While working Graham’s company, Buffett soon realized something important: he didn’t fully agree with Graham’s strict formulaic approach. Graham focused purely on numbers, while Buffett believed that understanding the business itself and its leadership was just as crucial.
After Buffett returned to Omaha, he launched Buffett Partnership Ltd., using a simple but effective strategy: pooling money from family and friends and investing it based on his deep research and long-term vision.
At first, convincing people wasn’t easy. Many doubted that a young, 26-year-old investor from Omaha could outperform the market. But Buffett had one thing that set him apart—results. His investments consistently grew at a higher rate than the stock market, and as word spread, more investors wanted to join. By the early 1960s, Buffett was managing millions of dollars and had earned a reputation for being an exceptional investor.
Buffett’s investment philosophy was simple: buy great businesses, hold them for the long term, and let time do the work. Unlike many investors who constantly bought and sold stocks to chase profits, Buffett believed in patience and discipline. His partnerships thrived, and by the time he made his biggest move—taking control of Berkshire Hathaway—Buffett had already built a fortune.
This was just the beginning of his rise to becoming one of the greatest investors of all time.
Acquisition and Transformation of Berkshire Hathaway
By the early 1960s, Warren Buffett had already built a strong reputation as an investor through his partnerships. But his defining moment came when he made what seemed like a bad investment—buying shares in a struggling textile company called Berkshire Hathaway.
Berkshire Hathaway was a failing textile business based in New England. At the time, the textile industry in the U.S. was in decline, and most investors wouldn’t even consider putting their money into such a company. But Buffett noticed something interesting—the company was undervalued. Its stock price was low, but its financial reports showed that it still had assets worth more than the market was giving it credit for. Seeing an opportunity, Buffett started buying shares.
In 1964, Buffett met with the company’s CEO, Seabury Stanton, who made an offer to buy back Buffett’s shares at $11.50 per share. Buffett agreed, but when he received the official offer letter, the price was only $11.375 per share. This small act of dishonesty angered Buffett so much that instead of selling his shares, he decided to take over the company.
In 1965, Buffett gained full control of Berkshire Hathaway, but he quickly realized that he had made a mistake. The textile business was dying, and there was no way to save it. Rather than continue trying to fix a failing industry, Buffett shifted Berkshire Hathaway’s focus entirely. He started using it as an investment vehicle, putting its money into strong, profitable businesses instead of textiles.
One of the first smart moves he made was investing in insurance companies. He bought National Indemnity and GEICO, understanding that insurance businesses generate a lot of cash upfront before they have to pay claims. This allowed Buffett to use that cash—known as “float”—to make even more investments.
With Berkshire Hathaway as his holding company, Buffett went on to buy shares in some of the world’s most successful businesses, including Coca-Cola, American Express, The Washington Post, and later, Apple. Under his leadership, Berkshire Hathaway transformed from a failing textile company into a multi-billion-dollar empire, proving that Buffett’s real talent wasn’t just picking stocks—it was seeing opportunities where others saw failure.
What started as a revenge move against a dishonest CEO turned into one of the greatest investment success stories in history.
Investment Philosophy and Notable Strategies
Warren Buffett’s investment philosophy is built on simplicity, patience, and long-term thinking. While many investors try to predict short-term market trends or jump into fast-growing stocks, Buffett has always focused on buying great businesses and holding them for decades.
His strategy is heavily influenced by Benjamin Graham’s value investing principles, but over time, Buffett developed his own approach. Instead of just looking at numbers and undervalued stocks, he pays attention to the quality of a business, its leadership, and its long-term potential.
One of Buffett’s most famous principles is “buy and hold”—he doesn’t believe in constantly buying and selling stocks. Instead, he invests in businesses he truly believes in and holds onto them for years, even during market crashes. He once said, “Our favorite holding period is forever.”
Another key part of his philosophy is only investing in things he understands. Buffett avoids industries that are too complicated or unpredictable, like cryptocurrencies or highly speculative tech startups. Instead, he focuses on stable, well-managed companies that provide essential goods and services.
Buffett also follows the rule: “Be fearful when others are greedy, and greedy when others are fearful.” He takes advantage of market downturns, buying stocks when they are undervalued and when most investors are scared to invest. This approach has helped him make some of his biggest and most profitable investments, such as buying large stakes in Coca-Cola, American Express, and Bank of America during financial crises.
Buffett’s success is proof that investing doesn’t have to be complicated. His philosophy revolves around buying good businesses, staying patient, and ignoring short-term market noise. By sticking to these principles, he turned Berkshire Hathaway into one of the most successful companies in history and became one of the richest people in the world.
Personal Life and Philanthropy
Despite being one of the richest men in the world, Warren Buffett has always lived a surprisingly simple and modest life. Unlike most billionaires who own yachts, private jets, and luxury mansions, Buffett still lives in the same house in Omaha, Nebraska, which he bought in 1958 for $31,500. He prefers McDonald’s breakfasts, drives his own car, and doesn’t own a smartphone. For Buffett, happiness doesn’t come from spending money—it comes from doing what he loves: investing and making smart financial decisions.
Buffett married his first wife, Susan Thompson, in 1952, and they had three children: Susie, Howard, and Peter. Although they later lived separately, they remained close until Susan’s passing in 2004. Buffett later married Astrid Menks, whom Susan had introduced to him decades earlier.
One of the most remarkable things about Buffett is his approach to wealth. He believes that money should not be hoarded but used to make the world a better place. In 2006, he announced that he would give away nearly all of his fortune to charity, making him one of the most generous philanthropists in history. Most of his donations have gone to the Bill & Melinda Gates Foundation, which focuses on global health, poverty reduction, and education.
In 2010, Buffett, along with Bill and Melinda Gates, created The Giving Pledge, an initiative encouraging billionaires to donate at least half of their wealth to charitable causes. Many of the world’s richest people, including Elon Musk, Mark Zuckerberg, and MacKenzie Scott, have since joined the pledge.
Buffett has always believed that children should not inherit extreme wealth because it can take away their motivation to succeed on their own. Instead of leaving billions to his kids, he has set aside enough for them to live comfortably but not so much that they won’t need to work. He has often said, “I want to give my kids enough so that they can do anything, but not so much that they can do nothing.”
Even in philanthropy, Buffett follows his investing principle: long-term thinking and making a real impact over time. His donations are structured to be given gradually, ensuring that they are used effectively rather than just handed out in large sums.
Warren Buffett’s personal life and philanthropy show that wealth is not just about personal luxury but about making a meaningful difference. Even with billions of dollars at his disposal, he has stayed true to his values—living simply, investing wisely, and giving generously.
Conclusion
Warren Buffett’s journey from a curious boy selling Coca-Cola to one of the world’s greatest investors is proof that success is built on knowledge, patience, and discipline. Unlike many billionaires, he didn’t create a flashy new invention or start a revolutionary company—he simply mastered the art of investing wisely and thinking long-term.
His ability to remain calm during financial crises and see opportunities where others see failure is what made him one of the wealthiest people in history.
But perhaps his greatest achievement isn’t his fortune—it’s his commitment to giving it away. By pledging to donate nearly all his wealth, Buffett has shown that money is not just for personal gain but for making the world a better place. His life teaches us that real success isn’t just measured in dollars—it’s measured in impact.
For anyone dreaming of financial success, Buffett’s story is an inspiration. You don’t need luck or a privileged background—you need curiosity, discipline, and the courage to think differently. As Buffett himself says, “The best investment you can make is in yourself.”
Prepared by Navruzakhon Burieva
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