Warren Buffett’s First Investment

Introduction

Warren Buffett is one of the most successful investors of all time. He is known for his value investing strategy and has a net worth of over $100 billion. But where did it all start? In this article, we will take a look at Warren Buffett’s first investment.

Early Life

Warren Buffett was born in 1930 in Omaha, Nebraska. He showed an interest in investing from a young age and even sold chewing gum, Coca-Cola, and newspapers door-to-door as a child. Buffett went on to attend the University of Nebraska, where he studied business and finance.

The First Investment

Buffett’s first investment was made when he was just 11 years old. He bought three shares of Cities Service Preferred at $38 per share. Cities Service was an oil company that was struggling at the time, but Buffett saw potential in the company. He sold his shares a few months later for $40 per share, making a small profit.

Lessons Learned

Even though Buffett’s first investment was not a huge success, he learned some valuable lessons from the experience. He realized that he needed to do more research before investing in a company and that he should not be influenced by other people’s opinions.

The Start of Buffett Partnership

After graduating from college, Buffett worked for a few different investment firms before starting his own partnership in 1956. He raised $105,000 from friends and family to start the partnership, which he ran out of his apartment in Omaha.

Buffett’s Investment Strategy

Buffett’s investment strategy was based on value investing. He looked for companies that were undervalued by the market but had strong fundamentals. He also focused on companies with a competitive advantage and a strong management team.

The Success of Buffett Partnership

Buffett Partnership was a huge success, with an average annual return of 29.5% from 1956 to 1969. The partnership was eventually dissolved in 1969, and Buffett went on to start Berkshire Hathaway.

Berkshire Hathaway

Berkshire Hathaway started as a textile manufacturing company but eventually transitioned into an investment holding company. Buffett used the company to invest in a wide range of companies, including Coca-Cola, American Express, and Gillette.

Buffett’s Legacy

Warren Buffett’s legacy is one of the most impressive in the investment world. He has consistently outperformed the market and has become one of the richest people in the world. He is also a philanthropist and has pledged to give away the majority of his wealth to charity.

Conclusion

Warren Buffett’s first investment may have been small, but it set him on the path to becoming one of the greatest investors of all time. His investment strategy and legacy continue to inspire investors around the world.

People Also Ask

Q: What was Warren Buffett’s first stock? A: Warren Buffett’s first stock was Cities Service Preferred. Q: How did Warren Buffett become so successful? A: Warren Buffett became successful through his value investing strategy and his ability to consistently make smart investment decisions. Q: What is Warren Buffett’s net worth? A: Warren Buffett’s net worth is over $100 billion. Q: What is value investing? A: Value investing is an investment strategy that involves buying undervalued stocks with strong fundamentals and holding onto them for the long-term.