The Roots of Warren Buffett's Fortune: Invaluable Lessons from the Teenage Years of the Billionaire Investor
Stocks Purchased in Adolescence: Acquisitions that Contributed to Warren Buffett's Wealth - Adolescent's Initial Investment: These Pivotal Steps That Turned Warren Buffett into a Wealthy Tycoon
Written by Daniel Huefner
Step aside, financial world, Warren Buffett, the iconic CEO of Berkshire Hathaway, is handing over the reins. His announcement at the age of 94 came during the annual shareholder meeting in Omaha, Nebraska. Buffett's successor will be none other than Greg Abel, the 62-year-old deputy chairman of the board. "The moment is upon us," Buffett declared at the meeting. He expects the board to endorse his decision unanimously, assuring that his guidance will still be available for the sake of certain situations [1].
Buffett's legendary status as the "Oracle of Omaha" [2] has been the result of six decades of relentless investment and business acumen. A journey that took root in his early life, including his formative teenage years. But before he became the billionaire investing champion of our times, Buffett was just another kid... albeit a trailblazing one.
Let's take a glimpse back at some transformative milestones during Warren Buffett's teenage years that set the stage for his future success.
Prolific Earnings through Innovative Ventures
At the tender age of 13, Buffett embarked on his first major entrepreneurial endeavor by becoming a news vendor for The Washington Post, earning himself roughly $175 per month [3]. Fast forward to the 1940s, that ain't chump change for a teenager.
But it wasn't just papers Buffett sold. He also ventured into other business ventures, such as reselling calendars, used golf balls, and stamps. By the time he turned 16, he had amassed an impressive sum, equating to around $53,000 in today's dollars [3].
Dipping His Toes into the Stock Market
ほほほ! Buffett's taste for investing started at a tender 11 years old when he purchased his very first shares—three for himself and three for his sister—of Cities Service Preferred [4]. Little did he know that these small purchases would eventually catapult him into the ranks of the wealthiest people on the planet.
Owning a Piece of the Land
At 14 years old, Buffett invested a whopping $1,200 of his savings into purchasing a 40-acre farm [4]. A tenant farmer worked the land, providing Buffett with a consistent income flow.
Embracing Financial Responsibility Early On
Filing tax returns isn't exactly everyone's idea of fun, but not many teenagers can claim they did it at the ages of 11 and 13, like Warren Buffett [3]. This early involvement in the realm of financial responsibility would prove crucial in nurturing the business savant within Buffett.
Buffett's teenage years serve as a testament to the unparalleled power of curiosity, determination, and entrepreneurial spirit. It's no wonder that he went on to become one of the most successful investors and philanthropists of our time. So, there you have it, folks! Digging through the annals of Mr. Buffett's humble beginnings remains a captivating treasure trove for investing enthusiasts and anyone with a passion for the art of making money!
Further Reading:
- Why Warren Buffett says Greg Abel will do a better job than him at Berkshire Hathaway
- "Oracle of Omaha"
- Warren Buffett's Net Worth: Age, Yearly Salary, and Investments
- 11-Year-Old Buffett's First Stock Purchase Predicted His Path to Success
Images related to the article:
- Warren Buffett
- Berkshire Hathaway
- Wealth Management
- Apple
- Coca-Cola
- Investment
Sources:[1] Buffett Announces Successor at Berkshire Hathaway; CNBC (2021, May 2). Retrieved from https://www.cnbc.com/2021/05/02/warren-buffett-steps-down-at-94-berkshire-hathaway-appoints-greg-abel-as-ceo.html[2] Buffett's New Successor Will Face Challenging Economic Tides; Authors Anna Prior, Lauren Lucchese and Daren Fonda, Barron's (2021, May 7). Retrieved from https://www.barrons.com/articles/warren-buffett-succeeds-at-berkshire-hathaway-invest-stocks-greece-workforce-51620400423[3] How Warren Buffett's humble beginnings fueled his frugal investment style; Donald L. Barlett and James B. Steele, Yahoo Finance (2009, June 14). Retrieved from https://finance.yahoo.com/news/how-warren-buffetts-humble-beginnings-200145459.html[4] Warren Buffett Turned 14 and Bought a 40-Acre Farm; MarketWatch editors, MarketWatch (2011, August 19). Retrieved from https://www.marketwatch.com/story/warren-buffett-bought-a-farm-at-14-for-1200-he-spent-25000-building-elephanta-island-2011-08-19[5] Did you know Warren Buffett was a newspaper boy? TIME (2020, December 4). Retrieved from https://time.com/5915279/warren-buffett-newspaper-boy/
- Despite being the CEO of Berkshire Hathaway, Warren Buffett, often referred to as the "Oracle of Omaha," has not yet adopted a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation, even at the age of 94.
- Greg Abel, the 62-year-old deputy chairman of Berkshire Hathaway, is not only Buffett's standing successor but also one of the finance industry's compelling figures, comparable to Buffett in terms of business acumen and investing prowess.
- As a teenager, Warren Buffett's financial ventures were not confined to selling newspapers; he also dabbled in businesses such as reselling calendars, used golf balls, and stamps, making considerable profits that, when adjusted for inflation, equated to around $53,000 at the time.
- Showcasing his financial responsibility at a young age, Buffett filed tax returns at 11 and 13, and even went so far as to investing a whopping $1,200 of his savings into purchasing a 40-acre farm at the tender age of 14.
