Warren Buffett Net Worth
On the 30th of August 1930, Warren Edward Buffett was born to Leila Buffett and Howard Buffett, a stockbroker that later became a congressman. Warren Buffett is the second child and he has two sisters. As a young boy, he had a knack for business and ways to make money, he was so good that he could recall long columns of numbers offhand. Unsurprisingly, he can still do this today.
At age 6, Warren Buffett ventured into his first business proceedings. His grandfather owned a grocery store. He bought 6 packs of Coca-Cola from the grocery store at 25 cents and sold each bottle of Coca-Cola for a nickel, thus making a profit of 5 cents. At such a tender age, he was already displaying his business acumen.
Warren Growing Up
At age 11, Warren Buffett bought three shares of Cities Service for both himself and his sister at $38 per share. Sadly, the price of Cities Service shares fell to $27 per share. Warren held on and thankfully, the price shot up to $40 per share, he immediately sold them and made a profit of $2 per share. But, Warren Buffett will come to regret this decision as the price of Cities Service shares increased to a whopping $200 per share.
At that young age, Warren learnt his first investment lesson, patience is key. Patience is needed for investments, and no true investor can be successful without having patience.
Warren Buffett is well known for his company Berkshire Hathaway which he bought into in the early 1960s, became a major shareholder and helped shape it to the success it is today.
Before Warren Buffett started working with Benjamin Graham, he was an investment salesman. He was very good at it and he enjoyed his job immensely, only encountering sad moments when clients lost money from shares that he suggested.
To prevent himself from having unhappy clients, Warren Buffett started a close partnership with private friends and families. He created the partnership with unusual rules. He stated that only $100 will be invested by himself. He will then reinvest his management fees until his stake in the partnership increased. 50% of any gains over 4% belonged to Warren Buffett, and he will repay the partnership with a quarter of any loss that the partnership incurred. Partners were not allowed to have any input on investments and money could only be added or withdrawn from the partnership on December 31st.
By 1959, the number of partnerships had increased to 7, and Warren Buffett had a 9.5% stake in over 1 million dollars of partnership assets. In 1962, Warren Buffett became a millionaire, and he merged all the partnerships into one entity.
Buying Berkshire Hathaway
Berkshire Hathaway used to be a textile company. In 1962, Warren Buffett had an opportunity to invest in it, and he took it. He had a dispute with the management of the company, because he felt that the company needed a change of leadership, then he began to buy shares of the company vigorously. Warren Buffett will later say that he regretted his purchase of the company.
Because Warren Buffett had invested in many types of companies, he had a good knowledge of numerous industries. Warren Buffett was not a textile expert and had no experience in running one or working in one, yet he bought Berkshire Hathaway. As time went on, Warren Buffett began to involve Berkshire Hathaway in other industries apart from the textile industry. Berkshire Hathaway became a holding company for Warren Buffett to invest in other things. This led to the buying and selling of companies in different industries.
Berkshire Hathaway has several subsidiaries including Dairy Queen, Fruit of the Loom, GEICO, Benjamin Moore & Co. and NetJets among others. Berkshire Hathaway also has holdings in companies like Procter & Gamble, Wal-Mart Stores, DirectTV, CostCo Wholesale, Wells Fargo, General Electric, American Express, Coca-Cola, IBM, General Motors, etc.
Warren Buffett Net Worth 2021
Today, Warren Buffett is the facilitator and financier of many financial transactions. When the Great Recession happened, Warren Buffett lent money to and invested in some companies that had financial troubles. Warren Buffett is now reaping the rewards of those financial transactions.
For example, his loan to Mars, Inc. gave him a net profit of $680 million. American Express Co. is now worth up to about 5 times what it was when Warren Buffett invested in it in 2008. Berkshire Hathaway bought 120 million shares of Wells Fargo in 2009. The prices of these shares have now gone up over 7 times. Berkshire Hathaway earns $300 million a year in dividends from Bank of America. Berkshire Hathaway also has the option to buy Bank of America shares at a very low price than what they are usually.
Berkshire Hathaway earns $500 million a year in dividends from GoldmanSachs Group. When the shares are repurchased, there will be a $500 million redemption bonus. Previously, early shares of Berkshire Hathaway were as low as $275 per share. By 2014, the cost per share was $200,000. Now, it is slightly above $330,000.
Warren Buffett is so modest that Forbes did not notice him early. And by the time they added him to the list of richest Americans in 1985, he was already a billionaire. As of 2021, Warren Buffett has an estimated net worth of $96.3 billion, which ranks him as the sixth richest person in the world.
|Current location||Omaha, Nebraska|
|Education||University of Nebraska-Lincoln (BA/BS), Columbia University (MS)|
|Occupation||Businessman, Investor, Philanthropist|
|Employer||CEO, Berkshire Hathaway|
|Relationship status||Widowed in 2004, Remarried in 2006 (Astrid Menks)|
|Net worth||$96.3 Billion|
|Source of Wealth||Berkshire Hathaway, Self Made|
|Last Updated||March 2021|