On July 3, 2006, Warren Buffett led the American Bank branch in the center of Omaha, went to the basement, and opened his safe box. He removed a piece of paper, which is a certificate for 121,737 shares Berkshire Hathaway stock. It was worth about $ 11 billion. The money selling money, which is a small part of Berkshire’s possessions, will be the first segment of his program Abandoning almost all his wealth.
This banking visit was a book in the life of Buffett, an appropriate financial signal event in the life story of a man who is widely considered the greatest investor in the world. He said luck While he reminded him of this with a visit to the same bank, then he called it the National Omaha, nearly 70 years ago, an event that appears to be in the past in the other life in the financial life of Bavate. He was 6 years old. His father created his savings account and put 20 dollars in it.
Between these two banking visits, Puffett Berkshire Hathaway created it, made it the largest group in America, and became globally famous. On May 3, he referred to the end of that wonderful term, declaring that he would do so The CEO of his office handed over to the old Lieutenant Greg Abel at the end of this year.
Bavite will leave with unbearable register. It has achieved an average annual return of 19.9 % to Berkshire shareholders from 1965 to 2024, or about 5.5 million per cent in the total indigenous investors, including the same. By 2020, his wealth had reached more than 200 billion dollars, making him the richest person in the world – if he did not He gave a lot of his store.
Consequently, the clear questions that received the investors who were transferred for decades: How did Pavite grow $ 20 to more than 200 billion dollars? Why did not others be able to do this? How did the secret find? What is the secret?
It is tempting to search for answers in Puffette formulated the saying of proverbs in an uninterrupted way: “Be afraid when others are greedy and greedy when others are afraid.” “It is much better to buy a great company at a fair price from a fair company at a great price.” “Just buy something that will be completely happy to keep it if you closed the market for 10 years.”
He believed them extensively, but they are not the key to his success. The key is that he never stopped searching for the key. When he was asked to explain his success, he said it was often “rational”. It seems very easy. But rational people change their beliefs when they dictate reality, and most of us find it strongly.
Pavite can do so. His maximum degrees depicted him as if he found it engraved on a stone tablet device, but in reality they learned. It was just a child when he started learning the difficult way. your Teenage investor Try technical analysis, and study stock price plans looking for “candlesticks” or “homogeneous difference signs”. This did not work, so he surrendered. He tried almost every investor, market timing, and choosing the right moments for buying and selling. This did not work too, so he left him behind.
He even made irrational and emotional decisions. At the age of 11, in 1942, he bought his first shares: three shares of Cities Service prefer himself and three shares for his sister Doris. (Cates Service is now known as Citgo.) The price decreased quickly. When he finally recovered and rose above the price he paid, sold – the price continued to rise, soon. He never forgot that he should ignore the price he paid, which he could not change, and focus only on the company’s future. He also learned that if he would invest someone else’s money, it is better to be very confident that he could do it well. He wrote his biography, Alice Schroeder, that Pavite will call this episode one of his most important life. “
Most people find it difficult to change their beliefs when they dictate reality. Pavite can do so.
Years later, as a successful manager in the fund with more stake, dared to change his philosophy in investing again. At Columbia Business College from 1949 to 1951, Buffett became a loyal student to Benjamin Graham, a co -author of the famous investment guide Security analysisThose who advised the purchase of shares only at the intense deal prices based on financial proportions. But Buffett’s commercial partner, Charlie MongerHe persuaded him that good companies were basically worth buying even if the deals are not shouting. In 1972, Buffett bought a dessert for three times the book value – expensive, to Grahamites – and he did not look back. See’s is still a great performance for Purchchire.
He never stopped challenging his beliefs. He saw the Dotcom bubble in the late 1990s as he was and said that. He explained that he would not invest in the Internet shares, because it was impossible to value. Silicon Valley’s heads rocked their heads wonderfully, concerning that Old Warren allowed the technology revolution to pass it.
When he hit the accident, he had all the right to be arrogant himself, but he later found Ribost later better. In 2016, purchase of technical property rights began: appleThat has grown to be the largest contract in the Berkshire shares portfolio.
Wall Street, often warned that Apple’s shares were exaggerated. Bin Graham had refused. But Buffett saw incredibly good works – heavily profitable, with a huge competitive “trench” around its products. He told his shareholders in 2023, “It was better to have a better job than anything we have.” (Berkshire The majority of Apple shares sold over the year 2024Puffett said he remained the largest shares of the company at the end of the year.I am somewhat embarrassing to say that (Apple CEO) Tim Cook made Berkshire a lot of money more than ever to Hathaway.“
While he was always rethinking how to earn money, Pavite was rethinking how to abandon it. For years, he intended to start donating his wealth (“more than 99 %”, he said) upon his death through an institution he created. But in 2006, in 75 years, after the era in which most executives retired, he changed his opinion. Instead, he will start donating it immediately, most of them to the Bill & Melinda Gates, with smaller amounts to his original institution and institutions established by both his three adult children. (Bill Gates is now a great commitment to the help of these donations, and Baraka Buffett; seeBill Gates 200 billion dollars: Within the biggest bet on humanity that the benefactor has ever made“))
Why transformation? Once again he formulated his views to fit reality. It was A good friend of gates For 15 years and admired their work in the institution, which was great enough to deal with the huge amounts he would send to them. They were also much smaller than himself. He concluded, as explained luckWas Bavate pure: “What could be more logical, in everything you want to do, from finding someone equipped better than it is?”
This is what brought him to his safe box in the center of Omaha, by himself, and he removes a piece of paper worth $ 11 billion. He soon sent it to the Gates Foundation. We cannot know his emotions at that moment, as he said goodbye to a large part of his life, but it is difficult to believe that he was swallowed up or shivered. Most likely he was smiling.
Three large axes
Warren Buffett was better than most of them in changing the path – a fact that explains both his success and longevity.
Abandoning “the butts of cigars”
Pavite began his career as a student of Benjamin Graham, who only recommended purchasing shares at rock prices. But Buffett’s business partner, Charlie Monger, convinced him that some strong companies deserve to be purchased even when they were not deals – paving the way for some Buffett’s best investments.
Take technology
Although he built an illegal busy record, Pavite avoided investing in technology companies, on the pretext that its future value was impossible to estimate. But he came in the end to get to know Apple, during the era of CEO Tim Cook, as a great traditional work with a huge “trench”. It has become one of the highest -performance Berkshire Hatchyari possesses.
Giving for the best donor
Puffett has long planned to abandon most of his wealth after his death. But the achievements of the Bill & Melinda Gates Foundation changed his opinion – and attracted about $ 40 billion in his money. As he said luck“What can be more logical, in everything you want to do, to find someone better equipped than you do?”
This article appears in the June 2025 issue of luck With the title “Warren Buffett’s Secret to succeed: He knew how to change his opinion.”
This story was originally shown on Fortune.com
https://fortune.com/img-assets/wp-content/uploads/2025/05/GettyImages-632128296-e1747427584361.jpg?resize=1200,600
Source link