Who doesn’t know the name Warren Buffett? One of the richest people in the world and known as an accomplished investor. The man who was born in Omaha, Nebraska, USA on August 30, 1930 was probably born with a business in his blood. With a wealth of 82.5 billion US dollars, Warren Buffet now occupies the third position of the list of Forbes’ richest people in the world 2019.

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As reported by Investopedia, Saturday (08/24/2019), Buffett started doing business at a very young age with a family background of economists and his father a stockbroker and member of the Nebraska Congress. Also read: Warren Buffett Says, It’s a Mistake of Parents to Teach Finance to Children At the age of 11, Buffett bought his first stock. He also works at his family’s grocery store in Omaha. His father, Howard Buffett, owned a small brokerage business.

That’s where Buffett spends his days watching what investors do and listening to what they talk about. As a teenager, he also took odd jobs ranging from washing cars to delivering newspapers. From his part-time job, he bought several pinball machines which he used for local businesses. Although Buffett was quite successful in his business, in his youth he did not have the desire to continue his education to college. His father insisted on continuing his education at the University of Pennsylvania, but Warren did not agree.

Finally, he was sent by his father to the University of Nebraska. There he completed his studies within 3 years, and graduated with a business degree.

Warren continued his education by taking postgraduate studies at Columbia Business School. There he studied under Benjamin Graham and David Dodd, who are now lifelong friends. Both are well-known securities analysts. Through Graham’s class in securities analysis, Buffett learns the basics of value investing. He once stated in an interview that Graham’s book, The Intelligent Investor, had changed his life and taken him on a path of professional analysis to the investment market.

Simultaneously with Security Analysis, written by Graham and Dodd provided him with an appropriate intellectual framework and a road map for investment. Entering investment Before working for Benjamin Graham, Buffett was an investment salesman. He began a partnership with close friends and family. Buffett himself invests only 100 dollars and, through reinvesting management costs, will grow his shares in partnership.

Then he took half of the partnership’s profits of more than 4 percent and paid the partnership a quarter of the losses incurred. In addition, money can only be added to or withdrawn from the partnership on December 31, and partners will not receive investment input into the partnership. In 1959, Buffett had opened a total of seven partnerships and had a 9.5 percent stake in more than one million dollars in partnership assets. Three years later when he was 30 years old, Buffett was a millionaire and combined all of his partnerships into one unit.

It was at this point that Buffett turned to direct investment in business. He invested 1 million US dollars in a windmill manufacturing company, and the following year in a bottling company. Buffett uses the value investment techniques he learned at school, as well as his expertise to understand the general business environment, to find deals on the stock market.