Warren Buffets: Secret of his Success

Warren Buffets: Secret of his Success

Introduction

Known as "the Oracle of Omaha", Warren Buffett is one of the most successful investors of all time. With the integration of a sound investment philosophy along with a flawless decision-making process, he has been able to outdo the stock market by approximately 13% over a 35-year period. His wealth fluctuates with the market performance but as of 2008 his estimated net worth was at $62 billion, which make him the richest man in the world. His incredible instincts, a just about sure-fire investment philosophy, and meticulous research, make him a legend of his own time. He almost single-handedly managed to pick Salomon Brothers up, with only a few thousands of dollars borrowed from friends and relatives, and by taking calculated risks with small companies and sticking around with them. Giants like Disney, Coca-Cola, American Express, Gillette, and McDonald's have been influenced by his magical touch, and he holds a chunk of each of them. Buffett had made himself already a millionaire by thirty-one, and he has steadily acted upon his way toward the top of the Forbes list. Well- known for his investigating genius, he shaped his own path via American business by carrying out punctilious research, supporting companies he believed in, and becoming wealthy on their success. His success story reveals that opportunities are plentiful for anyone willing to go for them (Steele, 2009).

Buffett possesses inimitable leadership qualities and over time, he integrated his learning into a winning management formula, which turn him not only the manager whom other managers want to follow but also one of the richest man in the world. Even in current economic climate, when so many major companies and investors are failing, Warren Buffett manages to remain successful in all his life aspect. The life philosophies of Buffett are reflected in his business decisions and in the way he manages businesses and people. This paper seeks to take an in-depth look at philosophies of Warren Buffett for personal and professional management and his secret success formula and his strategies for maintaining focus and keeping on track.

Discussion

The oracle of Omaha is arguably the greatest investor of all time. The timeless philosophy of Warren Buffett of value investing has proven profitable and relevant in all types of financial and markets environments. He has transformed the holding company Berkshire Hathaway into a powerhouse today by following his simple strategies.

Three Rule of Thumb of Investment

According to an article published in “The Independent”, revealing the secret of Warren Buffet's success, it is indicated that the whole secret of his success can be summed up briefly as: money should be invested in companies which are perceived to be well run; the profits should be reinvested in other good companies; money should not be borrowed at all. By following these three simple rules, money will compound in value.

The infatuation of Warren with numbers started very early in his life. The whole books of numbers could be ...