Warren Buffett

An early start

Warren Buffett was fascinated by numbers and business as a boy in Omaha. He sold chewing gum and newspapers, and bought his first shares at age 11. He studied under Benjamin Graham, the father of value investing, at Columbia Business School, then worked for Graham before starting his own investment partnerships in 1956.

Berkshire Hathaway

In the 1960s Buffett bought control of Berkshire Hathaway, a struggling New England textile company. He gradually turned it into a holding company that owns insurance businesses, railroads, energy companies, consumer brands and large stakes in public companies. Insurance premiums, called float, gave him money to invest. Berkshire's annual shareholder meeting in Omaha draws tens of thousands of people.

His principles

Buffett's ideas are famous for being simple: buy wonderful businesses at fair prices, understand what you own, think long term, and keep cash for opportunities. He talks about a margin of safety and about staying within your circle of competence. For most ordinary investors, he has repeatedly recommended low-cost index funds tracking the S&P 500.

Key takeaways

Buffett's core lessons are patience, understanding what you own and avoiding big losses. He buys strong businesses at fair prices and holds them for years. He suggests most people simply buy low-cost index funds. He also models living below your means and giving generously, showing that wealth and simple habits can go together.

Frugal and generous

Despite enormous wealth, Buffett has lived in the same Omaha house since 1958 and is known for simple habits. In 2006 he pledged most of his fortune to charity, and in 2010 he co-founded the Giving Pledge with Bill and Melinda Gates. In 2025 he announced he would step down as Berkshire's chief executive at year end, with Greg Abel succeeding him, while remaining chairman.

This page is general education, not financial, tax or legal advice. Everyone's situation is different, so check official sources and consider talking to a licensed professional before big decisions.

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