Look at the growth process of the genius stock god Warren Buffett
The growth process refers to the development stages of an individual or thing at different times during its movement and development. Below is what I bring to you to see the growth process of the genius stock investor Buffett. I hope it can help you!
Warren Buffett was born on August 30, 1930, in Omaha, Nebraska, USA. His father, Howard Buffett, was a local securities broker and Republican congressman. Warren Buffett has had a strong sense of investment since he was a child, and his love for stocks and numbers far exceeds that of anyone else in his family. He always wanted to make money, and when he was 5 years old, he put up a carpet at home to sell chewing gum. When he was a little older, he took his friends to the golf course to pick up used golf balls for wealthy people, and then resold them. The business was quite prosperous. Warren was cautious beyond his years and was described by his mother as a child who rarely caused trouble. When Warren was just 11 years old, he jumped into the stock market and bought his first stock. At the age of 17, Buffett entered the University of Pennsylvania to study finance and business management. However, he felt that the professors’ short-selling theory was not enough, so he left without saying goodbye after two years. . He was admitted to the Department of Finance at Columbia University and studied under Benjamin Gray, a famous investment theorist. Grey's mother opposed speculation and advocated evaluating stocks by analyzing factors such as a company's profitability, assets, and future prospects. In 1951, 21-year-old Buffett graduated with the highest grade of A+.
In 1956, Buffett returned to his hometown. The young and energetic Buffett was determined to try his hand at it. Once he suddenly shocked everyone at the house of a friend of his father's. Declared that I would become a millionaire by the age of 30, and if I didn’t achieve that goal, I would jump off the tallest building in Omaha. Soon a group of relatives and friends pooled together US$105,000, including US$100 of his, to establish his own company, Buffett Co., Ltd. At the beginning of his business, Buffett was very cautious. In less than a year, he already owned 5 partnership companies. Buffett made good on his millionaire promise. As a boss, Buffett only does one job every day, which is to immerse himself in the data pile to find cheap small stocks that are lower than their intrinsic value, then buy them and wait for the price to rise. For decades, Buffett has had an investment theory that has enabled him to win in the stock market and stay away from high-tech stocks. First, he only engages in long-term investment. What he invests in is never concepts, models, or just stocks themselves, but real businesses. Invest in companies that generate predictable returns. Second, he hates stocks with many stock options, such as high-tech stocks, calling such stocks lottery tickets. Third, he believes that buying the brands around him is the most reliable. Whoever advertises more and consumers like it will buy it. Buffett's vision remains the same.
In 1962, Buffett and his partners began to acquire shares in Berkshire Hathaway, a textile company on the verge of bankruptcy in Massachusetts, and took over the company three years later. Later, this small business became the most famous holding company in the hands of Buffett, and its stock price miraculously increased thousands of times more than 30 years ago. In May 1968, when the stock market was booming, Buffett announced his retirement. In June 1969, the stock market plummeted, gradually turning into a stock market crash. Buffett was secretly happy because he saw that the wealth was about to roll in and he discovered too many cheap stocks. In the early 1970s, the U.S. stock market was in turmoil, and Buffett turned his attention to the newspaper industry. His intervention greatly increased the profits of the Washington Post, with an average annual growth of 35%. Ten years later, Buffett's $10 million investment had appreciated to $200 million. Another masterpiece of Buffett is to subscribe for shares of Coca-Cola Company. In the 1970s, the company's performance was very mediocre. In 1980, he spent US$120 million to buy 7% of Coca-Cola's shares at a price of US$10.96 per share. By 1985, Coca-Cola changed its business strategy and began to withdraw funds and invest in beverage production. The unit price of its stock has risen to 51.5 US dollars, a five-fold increase. As for how much it has earned, the amount can make investors around the world stunned. From 1965 to 1994, Buffett's stock appreciation averaged 26.77% per year, which was nearly 17 percentage points higher than the Dow Jones Index. If someone invested $10,000 in Buffett's company in 1965, he would have received a return of $11.3 million by 1994. In other words, whoever had chosen Buffett 30 years ago would have been on a rocket to get rich.
Before 2001, Berkshire's return on equity had never been negative. This good fortune disappeared due to the September 11 terrorist attacks. But by 2003, he reversed the poor investment record of the past few years in one fell swoop and once again defended his status as the stock god and the saint of Omaha. In 2002, Buffett bought a large amount of PetroChina stock, which was Hathaway's eighth largest holding, and achieved a value increase of 175% that year.
Special Buffett. Buffett doesn't like to make public appearances and maintains a low-key lifestyle. He described his principles of life as simplicity, tradition and frugality. Buffett is five feet tall, of medium build, and usually wears glasses. The New York Times reported that Thatcher had given him the glasses, and he often had an eager, searching expression on his face. It's easy to be seen as a clerk, an accountant, a banker, or an absent-minded professor. In 1999, Buffett auctioned off his thick wallet to donate to a charity, the Omaha Orphanage. He had been using this dilapidated wallet for the previous 20 years. As Buffett explained, there's nothing special about this wallet and its history goes back a long way. My suit is old, my wallet is old, my car is old. I have been living in the old house since 1958. How much money does this rich man have in his wallet? I usually keep about $1,000 in my wallet. Although Buffett is reported to have worn an Italian suit worth $1,500, he only wears it on rare occasions. Sometimes on the weekends he wears a baggy navy blue T-shirt emblazoned with the SEC logo. As his daughter Susan said, one day my mother went to the mall and said let's buy him a new set of clothes. We were tired of looking at the clothes he had worn for 30 years. So we bought him a camel blazer and a blue blazer. But he asked me to return the clothes. He said I had a camel hair blazer and a blue blazer. Susan added that he would not change his clothes until they were very worn out. Buffett is well known for his fondness for Coca-Cola. He personally purchased Coca-Cola, buying 50 boxes of 12 cans each at a satisfactory discount price. He rarely runs to the store to drink. Buffett always lives within his means. He insists on operating at the lowest cost, holding sufficient cash on hand, and little or no debt. For example, he didn't buy a $295 IBM typewriter for his partnership until he was about to become a millionaire.
Buffett is famously frugal, but he is also the most generous donor in American history. He donated US$37 billion to five charitable foundations, which is by far the largest individual charitable donation in the world.
Behind the miracle. What power helped Buffett create such an astonishing miracle? This should first be attributed to the investment philosophy he learned from his master Greome and was tempered in his own practice. He has always adhered to a long-term value-oriented strategy. He said that if you are not prepared to hold a stock for more than 10 years, then don't hold it for even 10 minutes. Unlike others, he specifically looked for bear market stocks, just like a stock containment team. By the spring of 1966, the stock market was bullish, but Buffett was restless. Although his stocks were soaring, he found it difficult to find stocks that met his standards. of cheap stocks. Although the rise in the stock market has brought a windfall to speculators, Buffett remains unmoved. Because he believes that stock prices should be based on corporate performance growth rather than speculation. In May 1968, when the stock market was booming, Buffett informed his partners that he was retiring. He then gradually liquidated nearly all of Buffett Partners' stock. In June 1969, the stock market plummeted, gradually turning into a stock market crash. By May 1970, every stock was down 50% or more from the beginning of the previous year. But Buffett survived. Gray O's mother happily entered the stock market in 1930 before the stock market crash ended, but lost all his money. Nearly 40 years later, Buffett has successfully avoided disaster. Buffett has truly made his debut. From 1970 to 1974, the U.S. stock market was like a deflated rubber ball, lifeless. Continuous inflation and low growth have brought the U.S. economy into a period of stagflation. However, Buffett was secretly overjoyed because he saw that financial resources were about to roll in. He discovered too many cheap stocks, and he secretly searched for them everywhere.
It was during this period that Buffett collected many potential but undervalued stocks, which later created endless wealth for Buffett and eventually pushed Buffett to the throne of the world's richest man.
There are many comprehensive factors why the stock god was born in the United States. American capitalism is very developed, the stock market management is quite sound, and the legal system is also relatively sound. The good external environment and fertile investment soil make Buffett's theories and methods quite effective. But the current environment in China is not yet ready to produce someone like Buffett, and it may take many years. Because it takes time to perfect the entire stock market, the overall understanding of everyone’s mentality, education, and understanding of investment is not very different. We will have a lot of room to grow.
The Story of Buffett’s Wealth Philosophy
In Buffett’s wealth philosophy, there are three philosophies that warn us that we must always pay attention to them: First, if you don’t abandon what you have in your hands, you will not get more in the future. secondly, proper investment will bring huge returns; thirdly, when you have a lot of wealth, you will never be satisfied.
Warren Buffett, the most legendary securities investor in the world today, has invested in famous companies such as Coca-Cola, Gillette, Salomon Brothers Investment Bank, and General Electric with his unique and concise wealth philosophy and investment strategies. stocks and convertible securities. In the Pakistani wealth philosophy, there are three philosophies that warn us that we must always pay attention to it: first, if we don’t abandon what we have in hand, we will not get more in the future; second, only proper investment will bring rich returns; third, have a lot. When you have wealth, you will never be satisfied. The following uses three short stories to introduce the philosophical warning of Pakistani wealth...
Story 1: 1 yuan and 10 yuan
Philosophical warning: If you don’t abandon what you have in your hands, you will have to Not more to come later.
Susan tolerated her husband's alcoholism for many years, and finally made the painful decision to leave him with their young children. In fact, even after she divorced her husband, Susan continued to have trouble with him. Susan realized she had no choice but to leave the city. But again and again, Susan couldn't make up her mind. She loved her house, she loved her neighbors, and many things here made Susan nostalgic.
Susan found a real estate company, put her house on the "for sale" list, and sent her job application to Seattle, 1,400 miles away. Then Susan returned home and waited for many days. A month later, Susan changed to two real estate companies, but still could not find a buyer for the house. Susan felt that if she could not sell the house, she might not be able to leave the city.
The pressure of divorce and the hardship of life almost caused Susan to collapse, and sleep became extremely difficult. In fact, the only place Susan could fall asleep quickly was in church. Susan would go there every week, sit in the third or fourth row of the church, and soon fall asleep...
Spring is here. More than six months have passed, and Susan's house still hasn't sold. Another Sunday, Pastor Richard called the children to pray. When the children sat down in front of him, he took out a roll of 1-yuan notes from his pocket and put one in each child's hand. Then he reached into another pocket and pulled out a $10 bill.
"You can also have this 10-yuan bill," he held the 10-yuan bill high. The children sat attentively, holding 1 yuan banknotes tightly in their hands, "But, if you want to get this, you must throw away the banknotes you have already received."
This is really an interesting scene. None of those kids wanted to throw away the $1 note in his hand. Even though they are old enough, they know that 10 yuan is much more than 1 yuan. Finally, Pastor Richard put his $10 bill back into his pocket. This little demonstration made Susan think for a long time before she fell asleep out of habit in the church. Susan suddenly knew what she had done wrong - she was holding a coin tightly in her hand, and it was a dilapidated coin - that is, she loved her house too much and was too nostalgic for what she was already familiar with. environment. But subconsciously, Susan was not sure enough that there must be a "10-dollar bill" waiting for her in Seattle. Whenever Susan thought about this, she felt like moving out, like there was a ravine in the darkness, which made her shudder.
After some time of psychological training, when the warnings of "1 yuan and 10 yuan" kept appearing in Susan's mind, Susan knew that she had to leave. A big leap had to be made to stay away from the habits she had been used to for many years. So Susan bid farewell to the worn-out 1-dollar coin and started a new life with her children in Seattle.
Indeed, in Seattle, Susan realized her dream of becoming a best-selling author, although this dream was delayed for a long time. It also gave Susan a new loving husband, three children and three grandchildren.
Susan’s “10 yuan” contains happiness that Susan could never imagine in her later life. However, Susan clearly knew that before she could have any of the current happiness, she resolutely opened her hand - if she did not abandon what she had in her hand, she would not get more. .
Story 2: A 10-cent return
Philosophical warning: Proper investment will bring huge returns.
Reno Alice is the founder of the Alice School in Rome, Georgia, USA. Although there were many well-known private schools in the United States at the beginning of the 20th century, there were still very few public schools. As a teacher, Alice knew the importance of education in life. In order to allow poor children to go to school, she decided to raise funds to build a local public school.
Alice heard that there was a car dealer named Henry Ford who was very wealthy and often funded some public welfare undertakings, so she went to him for help. However, when he learned the purpose of the woman in front of him, Ford, who already hated others treating him as a professional donor, just took out a 10-cent coin from his pocket and threw it on the desk, saying disdainfully: "I have it in my pocket." It’s just so much money, take it and get out of here!”
Faced with Ford’s arrogance, Alice was not angry. She picked up the coins from the table and left. After returning to Rome, she used the 10 cents to buy a bag of peanuts and planted them in the ground. Under her careful care, one year later, the peanut seeds had grown into a lush peanut garden.
On this day, Alice came to Ford's office again, but this time she didn't come to ask for money, but to pay back the money. She handed a photo of the Peanut Garden and a coin to Ford, and happily said to him: "This is the 10 cents you gave me last year. Although it is not much money, it will bring you money if you invest it properly." Rich rewards."
Ford was so surprised after seeing the photo that he had to look at the woman in front of him with admiration. Then he signed a check for $25,000 and gave it to Alice, which was an astronomical figure at the time.
Not only that, in the following years, Ford also donated a teaching building named after him and several Gothic buildings to Alice School. When he saw the children sitting in the spacious and bright classrooms concentrating on learning, Ford was convinced that, as Alice said, his investment would surely bring huge returns.
Story 3: 99 slaves
Philosophical warning: When you have a lot of wealth, you will never be satisfied.
There is a king who has the world in his hands. Logically, he should be satisfied, but this is not the case. The king himself also wondered why he was not satisfied with his life. Although he consciously attended some interesting dinners and parties, it was to no avail and he always felt that there was something lacking.
One day, the king got up early and decided to walk around the palace. When the king walked to the royal kitchen, he heard someone humming a tune happily. Following the sound, the king saw that it was a cook singing, with happiness and joy on his face. The king was very surprised. He asked the cook why he was so happy. The cook replied: "Your Majesty, although I am just a cook, I have always tried my best to make my wife and children happy. We don't need much. We have a thatched hut above our heads and plenty of warm food in our stomachs. That's enough." My wife and children are my spiritual support, and even a small thing I bring home can satisfy them. The reason why I am so happy every day is because my family is happy every day.”
Hearing this, the king asked the cook to step aside first, and then asked the prime minister about the matter. The prime minister replied: "Your Majesty, I believe this cook has not yet become a slave of the 99 clan.
"
The king asked in surprise: "99 slaves? What are 99 clan slaves?
The prime minister replied: "Your Majesty, if you want to know exactly what 99 slaves are, please do this first: put 99 gold coins in a bag, and then put the bag At the door of that cook's house, you will soon understand what a 99 clan slave is. "The king followed what the prime minister said and ordered the cloth bag containing 99 gold coins to be placed in front of the happy cook's door.
When the cook came home, he found the cloth bag in front of the door and was curious. Let him take the bag to the room. When he opened it, he was surprised at first and then ecstatic: They were all gold coins! So many gold coins! The cook poured all the gold coins in the bag on the table and started counting 99 gold coins. ? The cook thought it shouldn't be this number, so he counted it again and again, and it was indeed 99. He began to wonder: There is no reason why there are only 99 gold coins? ? The cook began to search, he searched the whole room, and then searched the whole yard, until he was exhausted, and he was completely desperate.
He decided to work harder from tomorrow. Earn a gold coin as soon as possible to make his wealth reach 100 gold coins. Because it was too hard to find gold coins at night, he got up a little late the next morning and was in a bad mood. He yelled at his wife and children and blamed them. Failure to wake him up in time affected the realization of his grand goal of earning a gold coin as soon as possible. He hurried to the imperial kitchen, no longer as cheerful as before, neither humming nor whistling, but just immersed himself in working hard. While working, he didn't notice that the king was watching him quietly.
The king was puzzled to see the cook's mood change so drastically. He should be ecstatic to get so many gold coins. He asked the prime minister again. The prime minister replied: "Your Majesty, this cook has now officially joined the 99 clan slaves. 99 slaves are a type of people: they have a lot, but are never satisfied, so they work hard for the extra ‘1’, eager to achieve ‘100’ as soon as possible. There were so many things in life that were worthy of joy and satisfaction, but because of the sudden possibility of making up 100, everything was shattered. He tried his best to pursue the meaningless "1" at the cost of losing happiness. This is the 99 clan slave. " ;