Warren Buffett

Warren Edward Buffett

Warren Buffett, Chairman and CEO of Berkshire Hathaway

Personal details
Born	Warren Edward Buffett 1930/8/30 (age 95) Omaha, Nebraska, U.S.
Nationality	🇺🇸 American
Citizenship	🇺🇸 United States
Residence	🇺🇸 Omaha, Nebraska, United States
Languages	English
Education	University of Nebraska–Lincoln (BS) Columbia University (MS)
Spouse	Susan Thompson (m. 1952; died 2004) Astrid Menks (m. 2006)
Children	3 (Susan Alice, Howard Graham, Peter Andrew)
Parents	Howard Buffett (father) Leila Stahl Buffett (mother)
Relatives	Doris Buffett (sister) Roberta Buffett Elliott (sister)
Career details
Occupation	Business magnate, investor, philanthropist
Years active	1951–present
Employer	Berkshire Hathaway Inc.
Title	Chairman and CEO
Term	1970–present
Predecessor	Seabury Stanton (as CEO of Berkshire Hathaway)
Compensation	$100,000 (base salary)
Net worth	US$154 billion (May 2025)
Board member of	Berkshire Hathaway (Chairman) The Coca-Cola Company (former)
Awards	Presidential Medal of Freedom (2011)
Website	https://berkshirehathaway.com

Warren Edward Buffett (born August 30, 1930) is an American business magnate, investor, and philanthropist who serves as the chairman and CEO of Berkshire Hathaway... Known as the "Oracle of Omaha," Buffett is widely regarded as one of the most successful investors of all time. With a net worth of approximately $154 billion as of May 2025, he ranks as the 6th richest person in the world.

Early Life and Education

Warren Buffett was born on August 30, 1930, in Omaha, Nebraska, as the second of three children and the only son of Leila (née Stahl) and Congressman Howard Buffett. His father was a stockbroker and four-term U.S. Congressman. From an early age, Buffett displayed an extraordinary aptitude for business and mathematics.

At just 11 years old, Buffett made his first investment, purchasing three shares of Cities Service Preferred at $38 per share. This early start marked the beginning of a lifelong passion for investing that would eventually make him one of the wealthiest individuals in history.

Buffett attended the Wharton School of the University of Pennsylvania from 1947 to 1949, before transferring to the University of Nebraska–Lincoln, where he graduated with a Bachelor of Science in Business Administration at age 19 in 1950. He then attended Columbia Business School, where he earned a Master of Science in Economics in 1951. At Columbia, Buffett studied under Benjamin Graham, the legendary value investor who would profoundly influence his investment philosophy.

Career

Early Career (1951–1956)

After graduating from Columbia, Buffett worked from 1951 to 1954 at his father's firm, Buffett-Falk & Co., as an investment salesman. From 1954 to 1956, he worked at Graham-Newman Corp.. as a securities analyst under his mentor Benjamin Graham.

Buffett Partnership Ltd. (1956–1969)

In 1956, Buffett founded Buffett Partnership Ltd., his first investment partnership. Operating from Omaha, he began managing money for family and friends. The partnership delivered exceptional returns, compounding at an annual rate of approximately 24% before fees, significantly outperforming the Dow Jones Industrial Average.

Berkshire Hathaway (1970–present)

In 1962, Buffett began buying stock in Berkshire Hathaway, then a struggling textile manufacturing company. By 1965, he had taken control of the company. Rather than liquidate the failing textile business immediately, Buffett transformed Berkshire Hathaway into a diversified holding company.

Under Buffett's leadership, Berkshire Hathaway grew from a small textile mill into one of the world's largest and most successful conglomerates. The company's portfolio includes:

• Insurance operations: GEICO, General Re, Berkshire Hathaway Reinsurance Group
• Railroad: BNSF Railway
• Utilities and energy: Berkshire Hathaway Energy
• Manufacturing: Precision Castparts, Marmon Group, IMC, Lubrizol
• Retail and services: Dairy Queen, Fruit of the Loom, Duracell, See's Candies
• Equity investments: Major stakes in Apple, Bank of America, American Express, Coca-Cola, and others

As of 2025, Berkshire Hathaway has a market capitalization exceeding $1 trillion, making it one of the most valuable companies in the world.

Investment Philosophy

Buffett's investment strategy is rooted in value investing principles learned from Benjamin Graham. His key principles include:

• Long-term focus: Buffett famously said, "Our favorite holding period is forever"
• Quality businesses: Investing in companies with durable competitive advantages ("economic moats")
• Management quality: Seeking honest, competent management teams
• Margin of safety: Buying stocks at prices significantly below their intrinsic value
• Circle of competence: Only investing in businesses he understands

Personal Life

Family

Warren Buffett married Susan Thompson in 1952, and the couple had three children:

• Susan Alice "Susie" Buffett (born 1953): Chairs the Susan Thompson Buffett Foundation, focusing on education, poverty alleviation, and women's reproductive rights
• Howard Graham Buffett (born 1954): Farmer, businessman, and philanthropist who serves on Berkshire Hathaway's board
• Peter Andrew Buffett (born 1958): Musician, composer, and philanthropist who runs the NoVo Foundation

The Buffetts' marriage was unconventional. In 1977, Susan moved to San Francisco to pursue her singing career and personal interests, while remaining legally married to Warren. She encouraged her friend Astrid Menks, a former waitress, to care for Warren in her absence. Susan passed away in 2004 from a cerebral hemorrhage at age 72.

In 2006, on his 76th birthday, Buffett married Astrid Menks, who had been his companion since 1977.

Lifestyle

Despite his immense wealth, Buffett is known for his frugal lifestyle:

• Lives in the same house in Omaha, Nebraska, that he purchased in 1958 for $31,500
• Draws an annual salary of only $100,000 from Berkshire Hathaway
• Drives relatively modest cars
• Famously enjoys Cherry Coke and McDonald's for breakfast
• Plays bridge regularly and considers it both a hobby and mental exercise

Interests

• Bridge: An avid bridge player who plays regularly online and participates in tournaments
• Music: Enjoys playing the ukulele
• Reading: Spends approximately 80% of his day reading newspapers, annual reports, and books
• Teaching: Guest lectures at universities and mentors young investors

Philanthropy

Warren Buffett is one of the most generous philanthropists in history. He has pledged to give away 99% of his fortune to charitable causes, primarily through the Bill & Melinda Gates Foundation.

The Giving Pledge

In 2010, Buffett and Bill Gates founded The Giving Pledge, a campaign to encourage the world's wealthiest individuals to commit the majority of their wealth to philanthropic causes. As of 2025, over 240 billionaires from 30 countries have signed the pledge.

Charitable Donations

As of 2023, Buffett has donated over $50 billion to charitable causes. His annual donations primarily go to five foundations:

• Bill & Melinda Gates Foundation (majority)
• Susan Thompson Buffett Foundation (named after his first wife)
• Howard G. Buffett Foundation (run by his son Howard)
• Sherwood Foundation (run by his daughter Susan)
• NoVo Foundation (run by his son Peter)

Buffett has stated that his three children will distribute his remaining wealth after his death, ensuring that his philanthropic legacy continues.

Net Worth and Compensation

As of May 2025, Warren Buffett's net worth is approximately $154 billion, making him the 6th richest person in the world. Remarkably, he has accumulated this wealth while giving away over $50 billion to charity.

His net worth primarily consists of his ownership stake in Berkshire Hathaway:

• Owns approximately 15% of Berkshire Hathaway's Class A shares
• Takes only $100,000 annual salary with no bonuses or stock options
• Has never sold a share of Berkshire Hathaway for personal use

Succession Planning

In May 2025, at age 95, Buffett announced his succession plan. He requested that Berkshire Hathaway's board appoint Greg Abel, vice chairman for non-insurance operations, to succeed him as CEO by the end of 2025, while Buffett would remain as chairman. Abel, a Canadian businessman who joined Berkshire in 1999, has been groomed for this role for several years.

Awards and Recognition

• Presidential Medal of Freedom (2011) - Awarded by President Barack Obama
• Time 100 - Named one of the world's most influential people multiple times
• Forbes 400 - Consistently ranked among America's wealthiest individuals
• Honorary degrees - From numerous universities worldwide
• Commander of the Légion d'Honneur - France's highest civilian honor
• Honorary Citizen of Omaha - His beloved hometown

Business Philosophy

Buffett's annual letters to Berkshire Hathaway shareholders are widely read for their investment wisdom and business insights. Key principles from his philosophy include:

• "Be fearful when others are greedy, and greedy when others are fearful"
• "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price"
• "Risk comes from not knowing what you're doing"
• "The stock market is a device for transferring money from the impatient to the patient"
• "Someone's sitting in the shade today because someone planted a tree a long time ago"

Controversies and Criticism

While widely admired, Buffett has faced some criticism:

Tax Policy Advocacy

Buffett has advocated for higher taxes on the wealthy, famously noting that he pays a lower tax rate than his secretary due to preferential capital gains treatment. This stance has drawn criticism from some conservative commentators who see it as hypocritical given his wealth accumulation.

Succession Timing

Some shareholders have questioned why Buffett, at age 95, has waited so long to formally announce a succession plan, though others argue his exceptional health and mental acuity justify his continued leadership.

Berkshire's Size

Critics argue that Berkshire Hathaway has become too large for Buffett to continue delivering market-beating returns, though the company has continued to perform well under his leadership.

Legacy

Warren Buffett's impact on investing and business is immeasurable:

• Investment Education: His annual shareholder letters and public appearances have educated millions about value investing
• Philanthropy: Pioneered large-scale "giving while living" and inspired other billionaires to commit to philanthropy
• Business Ethics: Championed transparency, shareholder-friendly practices, and long-term thinking
• Economic Influence: His investment decisions move markets and influence corporate governance worldwide

Buffett's life story—from a young boy buying his first stock at 11 to becoming one of history's most successful investors and generous philanthropists—serves as an inspiration to entrepreneurs, investors, and business leaders globally..

See Also

• Berkshire Hathaway
• Charlie Munger
• Value investing
• The Giving Pledge
• Bill Gates

External Links

• Official Berkshire Hathaway website
• Warren Buffett Archive
• The Giving Pledge