S2 – EP. 002 – Warren Buffett, How to Become a Billionaire 101!
Introduction
Warren Buffett is the chairman and CEO of Berkshire Hathaway, an American multinational conglomerate holding company that owns more than 60 companies. Buffet, frequently called “The Oracle of Omaha” and a “financial genius”, is a businessman, investor, and philanthropist. He is also one of the top three richest people in the United States and top five richest people in the World. With a net worth of over $90 Billion in January 2018, he is considered to be one of the greatest and most successful investors in the world. And, Buffett has committed to giving away 99% of his fortune and already he has given away about $32 Billion.
Early Life
On August 30, 1930, Warren Edward Buffet was born in Omaha, Nebraska to the parents of Leila, a stay-at-home mom, and Howard Buffet, a stockbroker and future 4-term U.S. congressman. He was born at the beginning of the Great Depression hit and it would last for the first 9 years of Buffet’s life and shape who he was as a person. Buffett was the middle child and the only son of the Buffets.
When Buffett describes his childhood, he leans back in his chair as if he was thinking about the grand and great old times. He says, “I hit the lottery when it came to the gene pool. I mean I could not ask for a better father.” Buffett looked up to his father and you may even say that Buffett got into the investment business because of his father. His father was a stockbroker and later sold stocks for a living. When mentioning his mother, however, Buffett remembers the frequent and intense headaches that she experienced. In public, his mother was the model churchgoer, wife, and mother. She was always happy and ready to help anyone. Along with such “headaches,” however, she became very short tempered with her children. She often tormented and mentally abused them by calling them names, berating them, and criticized their every moment while their father was away at work. As Buffett grew older, he found peace by hang out at friends’ homes or staying away from home until his father returned from work.
As a child, perhaps even as an adult, Buffett never heard the words “I love you” from his parents. He was also never kissed or hugged. His parents did not believe in emotions or feelings. They were not allowed in the Buffett family. His parents believed in politics, money, and philosophy, but not LOVE. While his parents believed they were devout Christians, Buffett could not believe that there God existed when he had experienced such unloving parents.
Right from a young age, Buffett was a natural businessman. Starting around the age of 6 years old, Buffett wearing a money changer, started going door to door and selling chewing gum, Coca-Cola, newspapers, and magazines. His grandfather owned a local store. Buffett would obtain products from his grandfather, sell it to his neighbors, and split the profit with his grandfather 50/50. He enjoyed collecting things: bottle caps, coins, and stamps. In fact, Buffet loved anything that involved collecting, counting, and memorizing.
By the time he was ten, Buffett wasn’t just selling newspapers, although, he did that for a long time. He took a lot of odd jobs, like selling peanuts and popcorn at the University of Nebraska football games, getting old race track tickets and cashing them in, or selling golf balls.
Also, the year that Buffett turned 10 years old, his father took young him on an East Coast trip. This was a trip that Howard Buffett took each of his children when they turned 10 years old. For his trip, Buffett decided that he wanted to see three things: Scott Stamp & Coin Company, Lionel Train Company, and the New York Stock Exchange. While down on Wall Street, Howard Buffett and son visited Goldman Sachs, one of the largest brokerage firms in American, and met the Senior Partner, Sidney Weinberg.