Warren Buffet is an American business investor and a philanthropist. He has been consistently included on the wealthiest businessman thus making him an influential person. Despite being a billionaire, Buffet still lives a practical lifestyle which is enough for him and his family. He even made an announcement that he will be donating most of his wealth to a foundation.
Buffet’s philosophy examines corporate leadership of the organization aside from its numerical value. For this successful investor, value investing has referred to the appropriate fair price for the stock of a company with a high intrinsic value (Lupo). Unlike his mentor, Ben Graham who was a proponent of value investing, he focused on this aspect of assessing stocks rather than solely relying on balance sheets and income statements. Initially, Graham introduces value investing by scouting for lower value stock prices and buying them while waiting patiently for the market to increase its value. Since the initial value of these stocks have minimal risks, it would be easier to invest in low value shares because in the long-run, these low value shares can attain their real value in the future.
During the start of Buffet’s business career, his knowledge in investing was mainly learned from his stay with his mentor Ben Graham in the latter’s company. After his stint with that company, he started to venture into his own investing company which proves to be the path that would lead him to apply the teaching from his mentor. He became well known for his Berkshire Hathaway which is a textile manufacturing firm, but later moved to insurance sector.
Reference
Lupo, Tamar. Warren Buffett. New York: Weigl Publishers, 2008. Print.
