Thursday, September 18, 2008

Warren Buffett... A CEO with a difference

Warren Edward Buffett (born August 30, 1930, in Omaha, Nebraska) is an American investor, businessman and philanthropist. He is regarded as one of the world's greatest investors and is the largest shareholder and CEO of Berkshire Hathaway. With an estimated net worth of around US$62 billion, he was ranked by Forbes as the richest person in the world as of February 11, 2008 surpassing Bill Gates who reigned for 13 years. His annual salary which he gets from the company is a mere $100,000. Buffett announced in June 2006 that he would gradually give away 85% of his Berkshire holdings to five foundations in annual gifts of stock, starting in July 2006. The largest contribution would go to the Bill and Melinda Gates Foundation.
Here are some very interesting aspects of his life:
* He bought his first share at age 11 and he now regrets that he started too late!
* He first filed his income tax return at the age 13.
* He bought a small farm at age 14 with savings from delivering newspapers.
* He still lives in the same small 3-bedroom house in mid-town Omaha, that he bought after he
got married 50 years ago. He says that he has everything he needs in that house. His house does not have a outer wall or a fence.
* He drives his own car everywhere and does not have a driver or security people around him.
* He never travels by private jet, although he owns the world's largest private jet company.
* His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year.
* He never holds meetings or calls them on a regular basis. He has given his CEO's only two rules.
Rule number 1: Do not lose any of your share holder's money.
Rule number 2: Do not forget rule number 1.
* He does not socialize with the high society crowd. His past time after he gets home is to make himself some pop corn and watch Television.
* Bill Gates, the world's richest man (until 2007 according to Forbes) met him for the first time only 8 years ago. Bill Gates did not think he had anything in common with Warren Buffet. So he had scheduled his meeting only for half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet.
* Warren Buffet does not carry a cell phone, nor has a computer on his desk.
* His words of advice to young people: "Stay away from credit cards and invest in yourself and remember:
A. Money doesn't create man but it is the man who created money.
B. Live your life as simple as you are.
C. Don't do what others say, just listen them, but do what you feel good.
D. Don't go on brand name; just wear those things in which u feel comfortable.
E. Don't waste your money on unnecessary things; just spend on them who really in need rather.
F. After all it's your life then why give chance to others to rule our life."

1 comment:

Vaibhav Jain said...

loved the last 6 points... awesome