Warren Buffett, often referred to as the “Oracle of Omaha,” is one of the most successful investors in history. His journey in the investment world began at a young age, and his initial capital was modest. Here’s a brief overview of how Warren Buffett started his investment journey:
How much money did warren buffett start with
Early Beginnings:
Warren Buffett was born in Omaha, Nebraska, in 1930. His father, Howard Buffett, was a stockbroker and later a Congressman. Warren’s interest in making money and investing began when he was very young.
Childhood Investments: As a child, Warren made money by doing various small jobs. These included selling chewing gum, Coca-Cola, and delivering newspapers. He also ventured into small business opportunities, like buying a pinball machine and placing it in a local barbershop. With the earnings from one machine, he bought more, and soon he had multiple machines in various locations.
First Stock Purchase: At the age of 11, Warren made his first stock purchase. He bought three shares of Cities Service, an oil service company, for $38 per share. Though the stock initially dropped, it eventually rebounded, and Buffett sold his shares for a small profit.
The Initial Capital:
By the time he graduated from college, Buffett had saved about $10,000 from his various endeavors. In today’s money, adjusted for inflation, that would be closer to $100,000. But this wasn’t a gift or a loan – it was money he had earned and saved over the years.
Launching Buffett Partnership Ltd:
In 1956, after working for Benjamin Graham (the father of value investing) and after Graham decided to retire, Warren Buffett returned to Omaha and started Buffett Partnership Ltd. He began with $105,100, with about $100 of that being his own money. The rest was from family and friends.
In the subsequent years, Buffett’s astute investment decisions helped the partnership assets grow substantially. By 1962, the partnership had assets over $7 million, and Buffett himself was a millionaire.
Berkshire Hathaway:
In the 1960s, Buffett began buying shares in Berkshire Hathaway, a struggling textile company. Over time, he acquired more shares and eventually took control of the company. Instead of focusing on the textile business, he began using Berkshire Hathaway as a holding company for his other investments.
Today, Berkshire Hathaway is a conglomerate holding company owning a wide variety of businesses and is one of the most valuable companies in the world.
In Conclusion:
Warren Buffett started with a modest sum, but through a combination of hard work, savings, and astute investing, he managed to grow his wealth exponentially. His story is a testament to the power of long-term investing, patience, and continuous learning. It also underscores the importance of starting early and staying consistent in one’s investment journey.
