Buffett's true story

10,000 U.S. dollars into 270 million - the true story of Warren Buffett (1)

Editor's note: the world has more than 60 million people. In this vast human sea, the richest person is not • Warren Buffett, is • Bill Gates. Buffett smart outstanding, humorous extreme. It is also because of his human integrity and high moral character, dedication, clear thinking and quick reaction, makes him a celebrity in humans were recorded on the investment has a lofty position. Benban since today we are launching a lengthy series of "the true story of Buffett" in the hope of the majority of readers have enlightenment.

If you're in 1956 to 10,000 U.S. dollars to Warren Buffett • • Edwards (WarrenEdwardBuffett), it has become today about 270 million U.S. dollars. This is just after-tax income!

However, Berkshire companies (Berkshire) shareholders of the investment is by no means smooth sailing. In 1973 to 1974 economic recession, the company has been severely hit, and its stock price from 90 U.S. dollars per share fell to 40 dollars per share. In 1987 the stock market crash, stock prices from about 4,000 U.S. dollars per share fell to 3,000 U.S. dollars. In 1990 ~ 1991 Gulf War, it rocked the stock price sharply from 8,900 U.S. dollars per share fell to 5,500 U.S. dollars. In 1998 to 2000 period, the company announced the acquisition of Berkshire General Re (GeneralRe), it's shares from mid-1998 about 80,000 U.S. dollars per share fell to early 2000's 40,800 U.S. dollars.

   However, do not forget, since Buffett in the 1960s this cheap acquisition of the mill since the verge of bankruptcy, Berkshire company has undergone a qualitative change. At that time, Berkshire company is only a "residual pumping the first cigar," Buffett to an extremely low price of investment is only called "a residual smoke." Today, in accordance with standard accounting equity (net assets) to measure, Berkshire is the world's biggest listed companies. In the United States, Berkshire's net assets ranked fifth, ranked America Online - Time Warner, Citigroup, Exxon - Mobil Oil Corporation and Viacom after.

   If in 1956, your parents give you 10,000 U.S. dollars, and Buffett and ask you to invest, if you are lucky or very far-sighted, your funds will get 27,000 times the astonishing returns, while in the same period of the Road Jones Industrial Average index rose by only about 11 times. Furthermore, the Dow Jones index is a pre-tax value, so it is a virtual rose values. If Berkshire's stock price to 75,000 U.S. dollars, after deducting all expenses, to pay the taxes after an initial investment of 10,000 U.S. dollars will be quickly turned into 270 million U.S. dollars, of which occurred in the initial part of the cost of partnership Enterprises. After deducting all the costs and taxes before the first of 10,000 U.S. dollars investment will be rapidly increased to over 300 million U.S. dollars! No wonder some people to Berkshire stock known as: "People desperately want to get a gift" .

   If you late, until Buffett Berkshire acquired in 1965 when the company began investing, then you have the 10,000 U.S. dollars investment now will become more than 6,000 million U.S. dollars. If you put 10,000 U.S. dollars invested in the Standard & Poor's 500 index, its value is now about 500,000 U.S. dollars. Incidentally, be able to overcome the Standard & Poor's index of the very few investors. The Standard & Poor's index "As of December 31, 1997 of 16, outperforming 91 percent of stock mutual funds." (Te Weidi - Brown report).

   There is one thing to mention, Te Weidi - Brown's traditional fund management companies is the value of investments paternal • Graham (BenGraham) one of the early securities brokers, Graham at Columbia University nurture and mold The Buffett. • Executive Director Chris Brown's father served as Buffett did in the early advisers.

   • Chris Brown, not without regret to say, as Buffett's financial advisers, professional ethics does not allow him to invest in Berkshire - Hathaway. Worse, his father in September 1970 to 1,000 U.S. dollars worth of Berkshire stock as a wedding gift for his brother, Berkshire's stock price at that time about 40 U.S. dollars. Unfortunately, his brother sell these shares to cover their wedding expenses. • Chris Brown said: "He did it just to honeymoon is not all Banxi Shi." Younger brother stresses ostentation, Baikuo Qi, now burned through about 1.5 million U.S. dollars of the money. Brown had argued that: "It's all 30 of what happened before." However, this is a costly honeymoon.

   Spring 1965, when Berkshire acquired the company Buffett, Berkshire's stock price more than 10 U.S. dollars only, while the Dow Jones index close to 1,000 points in 1983, Berkshire's stock price is about 1,000 U.S. dollars, The Dow Jones industrial average is about 1,000 points to 2002, the Dow Jones index of about 10,000, Berkshire's stock price rose by about 75,000 U.S. dollars.

   If your investments so that you become a millionaire, you may want to know what it means for Buffett. The answer is: He has repeatedly become a billionaire. Buffett did not inherit any property, his company Berkshire holders of more than 30 per cent stake, this is an investment holding company, it has a large number of stocks, bonds, cash and other investments as well as numerous varieties of Industrial Company. As Buffett holding a large number of Berkshire shares, a number of ways, Buffett is Berkshire, Berkshire company that is taken for granted the wisdom of his. He likens his company Berkshire canvas. Buffett recalled his work scenarios, the "women's Daily" (October 10, 1985) said: "I'm very satisfied with the work. Go to work every morning, I like to paint the Sistine Chapel to . "