With a net worth of $84 billion- meet the Oracle of Omaha: Warren Buffett
by Tanvi Vohra, Saturday, June 30, 2018
If you are interested in the stock market and know its basics, it is impossible that you haven't encountered the name of the "Father of Stock Market", Warren Buffett. Born on August 30, 1930 he was the second child of his parents, Leila and Howard Buffett. The child prodigy depicted his amazing aptitude skills for both, money and business at a very young age. He could solve large calculations in his mind within seconds as a child, an ability he still continues to show off among his business colleagues.
When I was a child, I was too busy to play with my toys and cry over the ones I did not own. Surprisingly, Warren Buffett at the age of 6 purchased 6 packs of Coca-Cola for 25 cents and later resold these bottles for a nickel, thus making a profit of five cents. So, Warren Buffett was making money at the age of 6! Now I have a lot of inferiority complex!
Buffett took his first step in the World of finance at the age of 11 when he purchased 3 shares of Cities Service at $38 per share. Shortly after buying these shares, the price of per share dropped to $27. Although, Warren Buffett was frightened from his anticipated first loss, he held on to these shares till they went up to $40. He immediately sold these shares then, but later regretted it as the shares of Cities Service shoot up to $200. This experience taught him the first and foremost rule of investing in the share market: Patience is extremely important.
The legendary investor, who is expected to have a net worth of $84 billion has a lot to teach us for building a successful career. He has had his part of failures and his struggles when he took up the job as a newspaper delivery boy and when he was rejected by the Harvard Business School, for maybe he was "too young". Some of the things that Buffett did and those he believed played an important role for him to be successful include:
Strengthen your Communication Skills
Warren Buffett used to be scared from public speaking and his heart used to tremble when he used to go around the podium to address anyone. As Buffett recalls this habit, his biography (The Snowball: Warren Buffett and the Business of Life) stated, "You can't believe what I was like if I had to give a talk, I would throw u.” In an attempt to improve this confidence, Warren Buffet enrolled himself in a public speaking course in Dale Carnegie, the name of the institute influenced by the speaker and the author of "How to Win Friends and Influence People." The two most important lessons that Warren Buffett learnt in that institute was firstly, the importance of sharing personal anecdotes in his speeches and in regular conversations as well. Secondly, he also learned not to read a speech at length word by word. Rather, it is important to make only the key notes of the points to be included in the speech. Both these ways were believed to make Warren Buffett a successful public speaker, as in such a way, you will remember all the things that you have to include in your speech and you speak in a rather natural way.
Improving Reading Habits
Warren Buffett is believed to have taken a lot of successful major decisions because of his reading habits. He claims to start every morning with a bunch of newspapers and spend approximately 80 percent of his day reading about various topics. As per the resources, when Buffett was asked about the secret to his successful life, he pointed to a bundle of books kept near him and said, "Read 500 pages like this every day. That's how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it." It is true that it is nearly impossible to take out time from our hectic schedules to read that much but we can make an attempt to have a higher emotional intelligence and a wider vocabulary with reading to some extend every day.
Make the Right Friends
Warren Buffett is friends with the owner of Microsoft, Bill Gates from a long time and he believes that the right friends will always motivate you to achieve higher goals in life, mainly in the professional World. In a speech to the students of Columbia University, Warren Buffett along with Bill Gates addressed them and said,"You will move in the direction of the people that you associate with. It's important to associate with people that are better than yourself." Isn't it amazing that the World's top two richest men, Bill gates and Warren Buffet are best of friends that have never failed to inspire each other from achieving more than they thought they could at each point in life.
In 1962, Warren Buffett found the opportunity and invested in the New England textile company, Berkshire Hathaway. This company sets a great example. Buffett bought it when it was cheap and used this company as a holding point to invest in other businesses. Over the past decades, a lot of companies have been bought and sold through it. Some of the most important subsidiaries of the company include Dairy Queen, Netjets, Benjamin Moore & Co., and Fruit of the Loom.
Warren Buffet is an example for many who see their future in the stock market. Just keep one thing in mind, buying and selling of stocks is not a part time job, it requires your constant attention!