Warren Buffett?

Question

why is warren buffett so rich??? what exactly did he do??

Answer 1

He invests (not trades) on this:

"An investment operation," Benjamin Graham's classic book on value investing wrote in his first book, 'Security Analysis,' "is one which, upon thorough analysis, promises safety of principal and a satisfactory return. Operations not meeting these requirements are speculative."

In today's terms, go to your library and check out "Rule #1" by Robert Towns

Answer 2

Warren Buffet has generated all his wealth through stock investing. He is known as the best investor ever in the history of the world.

His common sense method of approaching investment and his ideas about investments are amazing. Anyone can read and understand them without having a lot of knowledge of finance. Every year he writes a letter to his shareholders in which he talks about investment etc. You should definitely go through these letters to learn more about him.

Answer 3

He made money in insurance businesses that enjoy two special massive privileges:

(1) On the incomes, the insurance businesses in the U.S. have successfully lobbied the government for lots of favorable laws and especially for free use of massive law enforcement resources, all just to force everyone to pay money.

(2) On the taxes, the insurance industry is excluded from accrual accounting.  That is insurance companies can pocket the money people pay as premium to use in any investments without having to recognize the income and pay taxes on it. This free use of the time value of money is a great source of profit.

Answer 4

He's the richest man in the world...

Buffet invested in stocks and used his mind...

Answer 5

What these guys said above me are true but lack the biggest part of what truley lead to his sucess. If you ever watched the movie "Wall Street" Gordan Gecko once said "Don't Get Emotional over Stock" And that is what Warren Buffet understood and mastered at. He is what we call a value investor. He does not do anything. He doesent produce anything, he doesent market anyn product he simply owns. The strongest value you can have in a business is ownership. Being that he is a value investor he buys into business that the market is selling for undervalue. Therefore he sees potential growth in these companies and money is made.He has been doing it for so long. Such companies like Coca Cola, Geiko, Ms. Cees candy, Acme, and Dairy Queen have made him rich beyond imagine. He invetses in what he knows that why he wont invest in tech stocks because he doesnt truley understand there function. Hes an appraiser, investor, accountant, and guru put into one person. He buys for cheap and holds onto them if he still sees value and sells at premium. He has almost all of his equity put into Berkshire Hathaways and he never reissued stock which is why Berkshore Hathaway is selling at almost $140,000 per share. Hes rich because he knows where theres value thats being retailes for under value.