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On July 3, 2006, Warren Buffett went to the US bank branch in Omaha city, went down, went down and opened a safe deposit box. A piece of paper has issued a certificate for 121,737 shares Berkshire Hathaway Stock. Was worth about $ 11 billion. The money from the sale of those shares would be part of Berkshire Holdings, the first tranche in its program give almost all of the wealth.
This bank was a bookbend in Buffett, the life story of a person accepted as the world’s largest investor in Buffett’s life. Said Fortune Saying the visit to the same bank, then called Omaha national first 70 years ago, an event that Buffett in Buffett’s financial life in the retrospect. He was 6 years old. His father set up a savings account for him and put him $ 20.
Between these two banks, Buffett Berkshire Hathaway, created America’s largest congestion and became popular on a global scale. On May 3, he pointed to the end of a remarkable run Turn CEO at the end of this year to Lieutenant Greg Abel.
Buffett will be separated in an unparalleled way record. From 1965 to 2024 since 2024, Berkshire shareholders returned to shareholders, including a total of 5.5 million percent or itself for the original investors. In the 2020s, his wealth will be more than $ 200 billion, the richest man in the world – not Most of their shares were given.
Thus, clear questions that change investors for decades: How did Buffett increase to $ 20 to be over $ 200 billion? Why didn’t others do it? How did the secret find? What is mystery?
Looking for the answers attractive Aphorisms Buffett so memorated: “When others fear, others fear when others are greed and greedy.” “It’s better to buy a better company at a fair price than a wonderful price of a beautiful company.” “Buy something that you will get the perfect thing in keeping the market only if it is closed for 10 years.”
They believed in intensively, but they are not key to their success. The key, he did not look for the key. When he wanted to explain his success, he often said he was “rational”. It sounds so easy. However, when rational people dictate the reality, they change their beliefs, and most of us are so much difficulty.
Buffett could do it. His maxes were almost engraved on the stone tablet, but in fact he learned them. It was a child when he just started to learn a difficult way. Like teen investor Technical analysis, “Damascus” or tried to study the schedules of stock prices seeking “separation of disagreement”. It didn’t work, so he gave. Approximately each investor has chosen how much it works, and those who have reached the market, buy and sell. This did not work, so he left him behind.
Even made irrational, emotional decisions. At the age of 11, in 1942 he received the first stock: three shares for three shares of cities and three shares for the sister Doris. (Cities service was now a oil and gas company.) The price was quickly dumped. Finally, he healed over the price he paid and rose, sold and the price of the price, quickly quintupling. He never forgotten that he did not forget the price he pays and focuses only on the company’s future. Also, if he intended to spend someone else’s money, he said better he could do anything well. His biographer, Alice Schroeder, Buffettin “This episode will call one of the most important life.”
Most people are difficult to change their beliefs while dictating reality. Buffett could do it.
Years later, as a successful fund manager, who has more, dared to change the philosophy of investment again. From 1949 to 1951, Buffett was a student dedicated to Buffett, Famous Investment Guide and Benjamin Graham, Benjamin Graham Security AnalysisOnly the financial rates are based solely on the prices of external bargaining. But, Buffettin business partner, Charlie MungerIt was convinced that good things are worth buying if they do not yell the deals of good work. Buffett in 1972, the book value of three times – received the buffet’s candy for expensive, Grahamites and never back. See as a great performer for Berkshire.
He never had a faith in his faith. He saw what was in the late 1990s, and it was not. He would not invest in Internet shares, explained because they could not be worth it. Silicon Valley Cheerleaders, who allow Old Warren to pass the technological revolution, dragging their heads.
When the accident occurred, he had the right to shoot himself, but later found a better riposte. In 2016, the technology began to buy Royalty: AppleBerkshire has grown as captured in the stock portfolio.
Wall Street analysts often warned Apple’s share. Ben Graham would be rejected. But Buffett did an incredibly good job, he did a great job, a great competitive “MOAT” around his own products. He said to shareholders in 2023, “This is a better job than we have.” (Berkshire Apple sold the majority of shares in 2024But at the end of the year, the company remained the largest capital.) At the last annual meeting of Berkshire, Buffettin said: “I was ashamed that (Apple CEO) Tim Cook grew more money than I did for Berkshire Berkshire Hathaway.“
While always thinking of money, Buffett thought it would be what he would give him. He has been planning to start his wealth for years (more than 99% “. However, in 2006, at the age of 75, the most peos were retired, he passed his mind, changed his mind. Instead, basically, the foundations of the guts and Melinda would begin to donate the foundations of the foundation, original foundation and the foundations of three adults, Bill and Melinda Gates Foundation. (Bill Gates now undertakes a focus on the help of these donations and with the blessing of Buffett; See “Bill Gates’ 200 billion dollars Moonshot: A philanthropist has done so far in the biggest bet in humanity“)
Why turn? Once again adapted his thoughts to reality. It was A good friend of Gates’ He has been amazed in the fund in the Fund, which has been a great amount for 15 years and will be able to send them. They were much younger than himself. As he explained FortunePure Buffett was: “Whatever you want, what can be better than to find something better than to do in what you want to do?”
He brought him to a safe deposit box in Downtown Omaha, pulled a piece of paper worth $ 11 billion by himself. Would soon send the Gates Foundation. At that moment, we do not know their emotions, because when he says a significant part of his life, it is difficult to believe that they are tough or vibrating. He smiled more.
Three Big Pivot
Warren Buffett was better than changing a fact that describes both success and longevity.
To give up “cigar butts”
Benjamin Graham, who recommends buying shares in the Buffett’s career, began as a student of Graham. However, Buffettin’s business partner Charlie Munger, even if some strong companies are not sowing for the best investment in Buffett, some strong companies convinced that some strong companies are worth to buy.
To catch up in Tech
As built an intermittent trace record, Buffett, claiming that their future value was impossible, was invested in technological companies. But as a result, he came to recognize Apple, as a traditional “Moat” of a giant competitive “Moat” in CEO Tim Cook. Berkshire was one of the best outgoing owners of Hathaway.
To give it better
Buffett has long planned to give most of his wealth after his death. However, the success of the bill and Melinda Gates Foundation changed the mind and earned $ 40 billion. As he says Fortune“What can you do more than finding anything you want to do if you want?”
This article appears in the number 2025 in June Fortune “Warren Buffett’s Success Success: He knew how to change his mind.”
This story was first displayed Fortune.com
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