Warren Buffett

How rich is Warren Buffett?

Retirement? This is not an issue for Warren Buffett, who was born in 1930. Understandable if you are considered the fourth richest man in the world. That reputation is hard-earned. Warren Buffet’s estimated net worth is $ 77.86 billion. For it to stay that way, or even more, the boss of Berkshire Hathaway is not thinking of quitting. The stock market guru promises: “I plan to work until I have exceeded 100.” It remains to be seen whether he will catch up with Bill Gates or Jeff Bezos. Barack Obama presented the entrepreneur with the President’s Medal of Freedom in 2011.

Warren Buffett’s fortune

Warren Buffett’s wealth is inextricably linked to his Berkshire Hathaway holding. The corporation had sales of $ 182 billion in 2013, bringing it to net proceeds of about $ 28.8 billion. These numbers are increasing every year. In 2014, sales were $ 194.7 billion, and profits were $ 28.1 billion. In 2015, the company even generated $ 210.9 billion in sales and $ 34.9 billion in profits. In 2016, too, the company figures were exemplary. Sales were $ 223.6 billion, and profits were $ 33.7 billion. Berkshire Hathaway is widely recognized as one of the most valuable publicly-traded companies in the United States. The company’s more profits, the richer Warren Buffett becomes, and his fortune continues to grow.

The stock market legend practices early

The father of Securities Dealers, the grandfather Krämer – equipped with this family heredity came Warren Edward Buffett on August 30, 1930, in Omaha, Nebraska. Early on, he showed a passion for collecting and an affinity for numbers. As a boy, he used profitably by increasing his pocket money through smaller shops in the neighbourhood. At just 11 years old, the boy had his first experiences in his father’s business. Howard Homan Buffett owned an investment office where the Filius bought three shares and then sold them again at a profit. The sales proceeds were quickly reinvested in property and business purchases.

The young Buffett remained loyal to his father’s company after completing his master’s degree in economics at the prestigious Columbia University in New York in 1951. At the same time, he continued his education and began teaching at the University of Nebraska on investment issues. In 1954 he became a securities analyst at the Graham-Newman brokerage firm. Buffett Partnership Ltd. was founded in 1956.

Berkshire Hathaway

In 1965, Buffett acquired Berkshire Hathaway. He gradually converted the previous textile company into a holding company specializing in insurance. Berkshire Hathaway has a reputation for being Buffett’s “investment vehicle”. The underlying principle: to divert capital from companies with little chance of success into more promising investments. Today Berkshire Hathaway operates in more than 60 different industries, most of the insurance and reinsurance. Despite its status as one of the most valuable companies in the United States, Berkshire employs just 22 people alongside Buffett himself and Vice President Charles Munger. Warren Buffett’s annual salary: $ 100,000.

Incidentally, Berkshire Hathaway’s share currently costs around 176,000 euros, making it the most expensive in the world. There is still an affordable B-share for mere mortal investors, which is traded around 120 euros each. Omaha’s annual general meeting is now attended by over 40,000 investors who want to hear their great idol speak.

Warren Buffet’s equity investments

In addition to stakes in companies, Berkshire Hathaway often also acquired entire companies. For example, Buffet took over the successful furniture retailer Nebraska Furniture Mart in 1983 and Clayton Homes, America’s largest accommodation manufacturer in trailer parks, in 2003. But shares in companies were also bought and expanded. Thus Berkshire Hathaway owns 16.5% in Apple and 12.8% in the American bank Wells Fargo. The investment firm owns additional shares in Bank of America, namely 11.2%. Shares are also held in the food sector, for example, 11% in The Kraft Heinz Company and 9.8% in Coca-Cola. Berkshire Hathaway has interests in more than 25 companies. Most of them had more than 1,000,000,000 euros. At the end of 2017, the value of all Buffet company holdings at over 140,000,000,000 euros.

Philanthropist – Charitable Donations

As one of the world’s richest people, Warren Buffett is well aware of his social duty. In 2010 he and Bill Gates launched a company that has set itself the task of “giving something back”. The idea behind “The Giving Pledge” – as the campaign is called – is to get as many wealthy people as possible to promise to use their wealth philanthropically. At the beginning of 2014, 122 billionaires and their families agreed to take part.

In 2014, Buffett bequeathed $ 2.8 billion in Berkshire shares to charities, most of which went to the Bill & Melinda Gates Foundation. The 4 family-owned foundations were also taken into account. Between 2001 and 2012, the billionaire supported various abortion organizations with around $ 1.2 billion. All in all, he has raised around $ 31 billion for philanthropic causes in his life to date. His last donation was in July 2018, where he again donated $ 3.4 billion to charities. After his death, 99% of all assets will go to charitable and charitable foundations.