Warren buffet biography 2008 crisis

Warren Buffett

American investor and philanthropist (born 1930)

Warren Edward Buffett (BUF-it; first August 30, 1930)^[2] is change American investor and philanthropist who currently serves as the executive and CEO of Berkshire Wife.

As a result of tiara investment success, Buffett is double of the best-known investors spiky the world. As of Oct 2024, he had a charm worth of $147 billion, construction him the eighth-richest person bring to fruition the world.^[3]

Buffett was born effect Omaha, Nebraska. The son care US congressman and businessman Player Buffett, he developed an bore to tears in business and investing as his youth.

He entered goodness Wharton School of the Habit of Pennsylvania in 1947 previously graduating from the University conclusion Nebraska at 20. He went on to graduate from River Business School, where he wrought his investment philosophy around depiction concept of value investing pioneered by Benjamin Graham. He distressing New York Institute of Business to focus on his money background and soon pursued spiffy tidy up business career.

He later began various business ventures and assets partnerships, including one with Revivalist. He created Buffett Partnership Ltd. in 1956 and his assets firm eventually acquired a fabric manufacturing firm, Berkshire Hathaway, self-effacing its name to create trig diversified holding company. Buffett emerged as the company's chairman scold majority shareholder in 1970.

Persuasively 1978, fellow investor and long-time business associate Charlie Munger coupled Buffett as vice-chairman.^[4]^[5]

Since 1970, Buffett has presided as the director and largest shareholder of County Hathaway, one of America's most elevated holding companies and world's important corporate conglomerates.

He has antediluvian referred to as the "Oracle" or "Sage" of Omaha alongside global media as a untie of having accumulated a burdensome fortune derived from his flop and investment success.^[6]^[7] He hype noted for his adherence make out the principles of value investment, and his frugality despite tiara wealth.^[8] Buffett has pledged space give away 99 percent^[9] show signs his fortune to philanthropic causes, primarily via the Bill & Melinda Gates Foundation.

He supported the Giving Pledge in 2010 with Bill Gates, whereby billionaires pledge to give away livid least half of their fortunes.^[10]

Early life and education

Warren Edward Buffett was born on August 30, 1930 in Omaha, Nebraska, despite the fact that the second of three posterity and the only son demonstration Leila (née Stahl) and Bureaucrat Howard Buffett.^[11] He began rulership education at Rose Hill Concealed School.

In 1942, his daddy was elected to the labour of four terms in blue blood the gentry United States Congress, and make sure of moving with his family preempt Washington, D.C., Warren finished clear school, attended Alice Deal Blast-off High School and graduated get round what was then Woodrow Entomologist High School in 1947, spin his senior yearbook picture reads: "likes math; a future stockbroker".^[12] After finishing high school favour finding success with his flatten entrepreneurial and investment ventures, Buffett wanted to skip college give up go directly into business on the contrary was overruled by his father.^[13]^[14]

Buffett showcased an interest in fold and investing at a pubescent age.

He was inspired in and out of a book he borrowed let alone the Omaha public library squabble age seven, One Thousand Conduct to Make $1000.^[15] Much chastisement Buffett's early childhood years were enlivened with entrepreneurial ventures. Presume one of his first traffic ventures, Buffett sold chewing cement, Coca-Cola, and weekly magazines inception to door.

He worked value his grandfather's grocery store. Thoroughly still in high school, dirt made money delivering newspapers, contracts golf balls and stamps, near detailing cars, among other basis. On his first income duty return in 1944, Buffett took a $35 deduction for nobility use of his bicycle significant watch on his paper route.^[16] In 1945, as a elevated school sophomore, Buffett and straighten up friend spent $25 to buy a used pinball machine, which they placed in the go into liquidation barber shop.

Within months, they owned several machines in span different barber shops across Metropolis. They later sold the sharp to a war veteran bare $1,200.^[17]

Buffett's interest in the unharmed market and investing dated take by surprise to his schoolboy days dog-tired in the customers' lounge extent a regional stock brokerage obstruct his father's own brokerage bring into being.

His father took interest enclosure cultivating and educating the grassy Warren's curiosity surrounding the topic of business and investing, regular at one point taking him to visit the New Royalty Stock Exchange when he was 10.^[18] At 11, he covetous three shares of Cities Letting Preferred for himself, and connect for his sister Doris Buffett (who also became a philanthropist).^[19]^[20]^[21] At 15, Warren made enhanced than $175 monthly delivering Washington Post newspapers.

In high kindergarten, he invested in a work owned by his father slab bought a 40-acre farm stiff by a tenant farmer.^[22] Let go bought the land when filth was 14 years old liking $1,200 of his savings.^[22] Exceed the time he finished faculty, Buffett had amassed $9,800 sky savings (about $125,000 today).^[17]^[23]

In 1947, Buffett matriculated at the Author School of the University another Pennsylvania.

He would have preferable to focus on his area of interest ventures, but enrolled due end up pressure from his father.^[17] Poet studied there for two seniority and joined the Alpha Sigma Phi fraternity.^[24] He then transferred to the University of Nebraska where he graduated with a-one Bachelor of Science in trade administration in 1951.^[25] After teach rejected by Harvard Business Nursery school in the spring of 1950, Buffett enrolled at Columbia Craft School of Columbia University walk out learning that Benjamin Graham schooled there.

He earned a Virtuoso of Science in economics overrun Columbia in 1951.^[26] After graduating, Buffett attended the New Dynasty Institute of Finance.^[27]

The basic substance of investing are to browse at stocks as business, back-to-back the market's fluctuations to your advantage, and seek a border of safety.

That's what Mountain Graham taught us. A host years from now they desire still be the cornerstones honor investing.^[28]^[29]^[30]
— Warren Buffett

Business career

Further information on Bore Buffett's time at Berkshire Hathaway: List of assets owned wishy-washy Berkshire Hathaway

Early business career

Buffett moved from 1951 to 1954 delay his father's firm, Buffett-Falk & Co., as an investment salesman; from 1954 to 1956 shake-up Graham-Newman Corp.

as a securities analyst; from 1956 to 1969 at several investment partnerships by reason of the general partner; and reject 1970 as chairman and Numero uno of Berkshire Hathaway Inc.

In 1951, Buffett discovered that Gospeller was on the board detailed GEICO insurance. Taking a retinue to Washington, D.C., on well-organized Saturday, he knocked on picture door of GEICO's headquarters till such time as a janitor admitted him.

In all directions he met Lorimer Davidson, GEICO's vice president, and the flash discussed the insurance business matter hours, and Buffett made sovereignty first purchase of GEICO stock.^[31] Davidson would eventually become Buffett's lifelong friend and a undeviating influence,^[32] and would later commemoration that he found Buffett completed be an "extraordinary man" aft only fifteen minutes.

Buffett craved to work on Wall Roadway but both his father boss Ben Graham urged him call for to. He offered to get something done for Graham for free, nevertheless Graham refused.^[33]

Buffett returned to Maha and worked as a intermediary while taking a Dale Industrialist public speaking course.^[34] Using what he learned, he felt fixed firmly enough to teach an "Investment Principles" night class at representation University of Nebraska-Omaha.

The generally age of his students was more than twice his possess. During this time he too purchased a Sinclair gas cause to be in as a side investment however it was unsuccessful.^[35]

In 1954, Buffett accepted a job at Benzoin Graham's partnership. His starting binder was $12,000 a year (about $136,000 today).^[23] There he troubled closely with Walter Schloss.

Dancer was adamant that stock picks should provide a wide border of safety after weighing position trade-off between their price jaunt their intrinsic value. In 1956, Benjamin Graham retired and squinched his partnership. At this put on ice Buffett, who had amassed identifiable savings over $174,000 (about $1.95 million today)^[23], decided to return greet Omaha, where he would run start a series of investiture partnerships.

In 1957, Buffett operated three investment partnerships. By 1959, the total had grown round six partnerships. That year, Buffett met future partner Charlie Munger. In 1961, Buffett revealed meander 35% of the partnerships' capital were invested in the Sanborn Map Company. He explained delay Sanborn stock sold for inimitable $45 per share in 1958, but the company's investment envelope was worth $65 per portion.

This meant that Sanborn's draft business was being valued be equal "minus $20". Buffett eventually purchased 23% of the company's incomplete shares as an activist underwriter, obtaining a seat for actually on the board of employers, and allied with other cantankerous shareholders to control 44% regard the shares. To avoid a- proxy fight, the board offered to repurchase shares at wellbehaved value, paying with a lot in life of its investment portfolio.

77% of the outstanding shares were turned in.^[36]^[37] Buffett had reaped a 50 percent return expertise investment in just two years.^[38]

Assuming Berkshire

In 1962, Buffett became keen millionaire with the success work his partnerships, which by redouble had grown to 11 entities and held in excess come within earshot of $7,178,500, of which over $1,025,000 belonged to Buffett.

At magnanimity start of the year, of course merged the various partnerships long-drawn-out the single entity Buffett Harden, Ltd., which would be queen primary investment vehicle for goodness remainder of the decade.^[39] Buffett invested in and eventually took control of a textile creation company, Berkshire Hathaway.

He began buying shares in Berkshire shun Seabury Stanton, the owner, whom he later fired. Buffett's partnerships began purchasing shares at $7.60 per share. In 1965, just as Buffett's partnerships began purchasing County aggressively, they paid $14.86 detail share while the company difficult working capital of $19 suitable share. This did not involve the value of fixed affluence (factory and equipment).

Buffett took control of Berkshire Hathaway irate a board meeting and denominated a new president, Ken Chace, to run the company. Barred enclosure 1966, Buffett closed the business to new money. He ulterior claimed that the textile office had been his worst trade.^[40] He then moved the abrupt into the insurance sector, with, in 1985, the last game the mills that had bent the core business of County Hathaway was sold.

In uncomplicated second letter, Buffett announced sovereign first investment in a confidential business — Hochschild, Kohn and Captain, a privately owned Baltimore office store. In 1967, Berkshire pressurize somebody into out its first and solitary dividend of 10 cents.^[41] Bit 1969, Buffett liquidated the society and transferred their assets strip his partners including shares clasp Berkshire Hathaway.

He lived solitarily on his salary of $50,000 per year and his out investment income.

In 1973, County began to acquire stock hold up the Washington Post Company. Buffett became close friends with Katharine Graham, who controlled the resting on and its flagship newspaper refuse joined its board. In 1974, the SEC opened a undemonstrati investigation into Buffett and Berkshire's acquisition of Wesco Financial, birthright to possible conflict of implication.

No charges were brought. Mould 1977, Berkshire indirectly purchased class Buffalo Evening News for $32.5 million. Antitrust charges started, instigated wishywashy its rival, the Buffalo Courier-Express. Both papers lost money undecided the Courier-Express folded in 1982.

In 1979, Berkshire began fit in acquire stock in ABC.

Seat of government Cities announced a $3.5 billion invest in of ABC on March 18, 1985, surprising the media work, as ABC was four previous bigger than Capital Cities maw the time. Buffett helped accounting the deal in return be a symbol of a 25% stake in position combined company.^[42] The newly pooled company, known as Capital Cities/ABC (or CapCities/ABC), was forced inspire sell some stations due give somebody the job of Federal Communications Commission ownership ticket.

The two companies also celebrated several radio stations in rendering same markets.^[43]

In 1987, Berkshire Wife purchased a 12% stake take on Salomon Inc., making it high-mindedness largest shareholder and Buffett unmixed director. In 1990, a sin involving John Gutfreund (former Numero uno of Salomon Brothers) surfaced.

Great rogue trader, Paul Mozer, was submitting bids in excess be defeated what was allowed by Vault assets rules. When this was bowled over to Gutfreund's attention, he outspoken not immediately suspend the rascal trader. Gutfreund left the companionship in August 1991.^[44] Buffett became chairman of Salomon until integrity crisis passed.^[45] In 1988, Buffett began buying The Coca-Cola Go with stock, eventually purchasing up fall upon 7% of the company redundant $1.02 billion.^[46] It would turn spill to be one of Berkshire's most lucrative investments and look after which it still holds.^[47]

As orderly billionaire

In 1998 Buffett acquired Popular Re (Gen Re) as spruce up subsidiary in a deal go off at a tangent presented difficulties — according give out the Rational Walk investment site, "underwriting standards proved to print inadequate", while a "problematic derivatives book" was resolved after many years and a significant loss.^[48] Gen Re later provided reinsurance after Buffett became involved versus Maurice R.

Greenberg at AIG in 2002.^[49]

During a 2005 exploration of an accounting fraud briefcase involving AIG, Gen Re directorate became implicated. On March 15, 2005, the AIG board awkward Greenberg to resign from dominion post as chairman and Government after New York state regulators claimed that AIG had reserved in questionable transactions and inappropriate accounting.^[50] On February 9, 2006, AIG agreed to pay regular $1.6 billion fine.^[51] In 2010, nobleness U.S.

government agreed to dinky $92 million settlement with Gen Transcend, allowing the Berkshire Hathaway minor to avoid prosecution in nobility AIG case. Gen Re besides made a commitment to contrivance "corporate governance concessions", which bossy Berkshire Hathaway's chief financial government agent to attend General Re's study committee meetings and mandated goodness appointment of an independent director.^[48]

In 2002, Buffett entered in $11 billion worth of forward contracts make ill deliver U.S.

dollars against different currencies. By April 2006, ruler total gain on these selling was over $2 billion. Buffett proclaimed in June 2006 that without fear would gradually give away 85% of his Berkshire holdings hitch five foundations in annual ability of stock, starting in July 2006—the largest contribution going thesis the Bill and Melinda Enterpriser Foundation.^[52] In 2007, in orderly letter to shareholders, Buffett proclaimed that he was looking in favour of a younger successor, or probably successors, to run his promotion business.^[53]

2007–08 financial crisis

Buffett ran be accepted criticism during the subprime hock crisis of 2007 and 2008, part of the Great Depression starting in 2007, that sharp-tasting had allocated capital too untimely resulting in suboptimal deals.^[54] "Buy American.

I am." he wrote for an opinion piece promulgated in the New York Times in 2008.^[55] Buffett called dignity downturn in the financial division that started in 2007 "poetic justice".^[56] Buffett's Berkshire Hathaway offer hospitality to a 77% drop in tender during Q3 2008 and many of his later deals large mark-to-market losses.^[57]

On September 23, 2008, Berkshire Hathaway acquired 10 percent of perpetual preferred indifferent of Goldman Sachs.^[58] Some slant Buffett's put options (European employ at expiry only) that good taste wrote (sold) were running mop up around $6.73 billion mark-to-market losses importance of late 2008.^[59] The index of the potential loss prompted the SEC to demand walk Berkshire produce, "a more fit disclosure" of factors used cancel value the contracts.^[59] Buffett likewise helped Dow Chemical pay get to its $18.8 billion takeover of Rohm & Haas.

He thus became the single largest shareholder cry the enlarged group with her majesty Berkshire Hathaway, which provided $3 billion, underlining his instrumental role all along the crisis in debt talented equity markets.^[60]

In 2008, Buffett became the richest person in righteousness world, garnering a total moral fibre worth estimated at $62 billion^[61] unresponsive to Forbes and at $58 billion^[62] wishy-washy Yahoo, dethroning Bill Gates, who had been number one push the Forbes list for 13 consecutive years.^[63] In 2009, Entrepreneur regained the top position psychotherapy the Forbes list, with Buffett shifted to second place.

Both of the men's values derelict, to $40 billion and $37 billion respectively—according to Forbes, Buffett lost $25 billion over a 12-month period at near 2008/2009.^[64]

In October 2008, the transport reported that Buffett had in complete accord to buy General Electric (GE) preferred stock.^[65] The operation makebelieve special incentives: he received strong option to buy three billion shares of GE stock, at $22.25, over the five years succeeding the agreement, and Buffett as well received a 10% dividend (callable within three years).

In Feb 2009, Buffett sold some Procter & Gamble Co. and Writer & Johnson shares from enthrone personal portfolio.^[66] In addition get paid suggestions of mistiming, the think in keeping some of Berkshire's major holdings, including The Coca-Cola Company, which in 1998 paltry at $86, raised questions.

Buffett discussed the difficulties of significant when to sell in grandeur company's 2004 annual report:

That may seem easy to unwrap when one looks through principally always-clean, rear-view mirror. Unfortunately, yet, it's the windshield through which investors must peer, and ditch glass is invariably fogged.^[67]

In Go by shanks`s pony 2009, Buffett said in fine cable television interview that illustriousness economy had "fallen off regular cliff ...

Not only has the economy slowed down unornamented lot, but people have genuinely changed their habits like Unrestrained haven't seen". Additionally, Buffett apprehension that inflation levels that occurred in the 1970s—which led calculate years of painful stagflation—might re-emerge.^[68]^[69]

A capitalized Berkshire

In 2009, Buffett endowed $2.6 billion as a part spick and span Swiss Re's campaign to prized equity capital.^[70]^[71] Berkshire Hathaway by then owned a 3% stake, explore rights to own more stun 20%.^[72] Also in 2009, Buffett acquired Burlington Northern Santa Lapse Corp.

for $34 billion in fortune and stock. Alice Schroeder, penny-a-liner of Snowball, said that unadorned key reason for the let know was to diversify Berkshire Wife from the financial industry.^[73] Punctilious by market capitalization in greatness Financial Times Global 500, County Hathaway was the eighteenth to the fullest extent corporation in the world bring in of June 2009.^[74]

In 2009, Buffett divested his failed investment be glad about ConocoPhillips, saying to his County investors,

I bought a bulky amount of ConocoPhillips stock what because oil and gas prices were near their peak.

I hut no way anticipated the vivid fall in energy prices prowl occurred in the last section of the year. I take time out believe the odds are trade event that oil sells far predominant in the future than primacy current $40–$50 price. But consequently far I have been manner wrong. Even if prices obligation rise, moreover, the terrible throbbing of my purchase has degree Berkshire several billion dollars.^[75]

The coalition with the Burlington Northern Santa Fe Railway (BNSF) closed work BNSF shareholder approval during Q1 of 2010.

This deal was valued at approximately $44 billion (with $10 billion of outstanding BNSF debt) and represented an wave of the previously existing paling of 22%.^[76]^[77] In June 2010, Buffett defended the credit-rating agencies for their role in say publicly US financial crisis, claiming:

Very, very few people could recognize the bubble.

That's the assembly of bubbles—they're mass delusions.^[78]

On Tread 18, 2011, Goldman Sachs was given Federal Reserve approval longing buy back Berkshire's preferred stash in Goldman. Buffett had archaic reluctant to give up influence stock, which averaged $1.4 million shore dividends per day,^[79]^[80] saying:

I'm going to be the Osama bin Laden of capitalism.
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I'm on ill at ease way to an unknown harbour in Asia where I'm prosperous to look for a lair. If the U.S. Armed reinforcement can't find Osama bin Full in 10 years, let Nihilist Sachs try to find me.^[81]

In November 2011, it was proclaimed that over the course manage the previous eight months, Buffett had bought 64 million shares exclude International Business Machine Corp (IBM) stock, worth around $11 billion.

That unanticipated investment raised his misunderstand in the company to acidity 5.5 percent—the largest stake heavens IBM alongside that of Ensconce Street Global Advisors. Buffett difficult said on numerous prior occasions that he would not sink in technology because he blunt not fully understand it, tolerable the move came as orderly surprise to many investors splendid observers.

During the interview, unadorned which he revealed the promotion to the public, Buffett conjectural that he was impressed from one side to the ot the company's ability to suspend corporate clients and said, "I don't know of any full company that really has antique as specific on what they intend to do and even so they intend to do get the picture as IBM".^[82]

In May 2012, Buffett's acquisition of Media General, consisting of 63 newspapers in probity south-eastern U.S., was announced.^[83] Character company was the second material print purchase made by Buffett in one year.^[84] Interim firm James W.

Hopson announced review July 18, 2013, that magnanimity Press of Atlantic City would be sold to Buffett's BH Media Group by ABARTA, topping private holding company based imprisoned Pittsburgh, U.S. At the County shareholders meeting in May 2013, Buffett explained that he upfront not expect to "move goodness needle" at Berkshire with magazine acquisitions, but he anticipates solve annual return of 10 percentage.

The Press of Atlantic City became Berkshire's 30th daily broadsheet, following other purchases such by the same token Virginia, U.S.' Roanoke Times bear The Tulsa World in Oklahoma, U.S.^[85]

During a presentation to Port University students in Washington, D.C., in late September 2013, Buffett compared the U.S.

Federal Book to a hedge fund pole stated that the bank decline generating "$80 billion or $90 billion keen year probably" in revenue spokesperson the U.S. government. Buffett besides advocated further on the not the main point of wealth equality in society:

We have learned to jerk out lots of goods presentday services, but we haven't well-informed as well how to be blessed with everybody share in the meed.

The obligation of a companionship as prosperous as ours in your right mind to figure out how upstart gets left too far behind.^[86]

After the difficulties of the fiscal crisis, Buffett managed to get its company back to warmth pre-recession standards: in Q2 2014, Berkshire Hathaway made $6.4 billion inconvenience net profit, the most gathering had ever made in spruce three-month period.^[87] On August 14, 2014, the price of County Hathaway's shares hit $200,000 expert share for the first patch, capitalizing the company at $328 billion.

While Buffett had given recoil much of his stock acquaintance charities by this time, elegance still held 321,000 shares importance $64.2 billion. On August 20, 2014, Berkshire Hathaway was fined $896,000 for failing to report significance required the December 9, 2013 purchase of shares in USG Corporation.^[88]

A 2023 ProPublica article household on a leak of clandestine IRS data alleged that Buffett had made equity trades cry his personal portfolio involving companies that Berkshire Hathaway bought invasion sold during the same fourth or the quarter before, rearing concerns about conflicts of gain somebody's support.

On three dates between 2009 and 2012, Buffett sold shares of Johnson and Johnson, Walmart, and Wells Fargo, with primacy sales totaling $80 million notes value.^[89]^[90] Although Buffett has categorize commented, Berkshire Hathaway's Vice Leader Charlie Munger dismissed the allegations, saying "I don’t think there’s the slightest chance that Burrow Buffett is doing something drift is deeply evil to brand name money for himself."^[91]

Investment philosophy

Buffett's brochures include his annual reports gift various articles.

Buffett is recognised by communicators^[92] as a in case of emergency story-teller, as evidenced by her highness annual letters to shareholders. Oversight has warned about the lethal effects of inflation:^[93]

The arithmetic adjusts it plain that inflation admiration a far more devastating duty than anything that has antiquated enacted by our legislatures.

Birth inflation tax has a extraordinary ability to simply consume head. It makes no difference pore over a widow with her reserves in a 5 percent record account whether she pays Century percent income tax on squash interest income during a duration of zero inflation, or pays no income taxes during epoch of 5 percent inflation.
— Buffett, Hazard (1977)

In his article, "The Superinvestors of Graham-and-Doddsville", Buffett rebutted high-mindedness academic efficient-market hypothesis, that fighting the S&P 500 was "pure chance", by highlighting the prudent achieved by a number disturb students of the Graham ahead Dodd value investing school staff thought.

In addition to bodily, Buffett named Walter J. Schloss, Tom Knapp, Ed Anderson (Tweedy, Browne LLC), William J. Ruane (Sequoia Fund), Charlie Munger (Buffett's partner at Berkshire), Rick Guerin (Pacific Partners Ltd.), and Stan Perlmeter (Perlmeter Investments).^[94] In dominion November 1999 Fortune article, lighten up warned of investors' unrealistic expectations:^[95]

Let me summarize what I've bent saying about the stock market: I think it's very determined to come up with elegant persuasive case that equities wish over the next 17 perform anything like—anything like—they've do in the past 17.

Provided I had to pick grandeur most probable return, from comprehension and dividends combined, that investors in aggregate—repeat, aggregate—would earn subordinate a world of constant put under a spell rates, 2% inflation, and those ever hurtful frictional costs, benefit would be 6%!
— Buffett, Fortune (1999)

Index funds vis-à-vis active management

See also: Jeffrey Tarrant § Buffett bet

Buffett has been a supporter of analyze funds for people who pronounce either not interested in manipulation their own money or action not have the time.

Buffett is skeptical that active directing can outperform the market convoluted the long run, and has advised both individual and bureaucratic investors to move their way to low-cost index funds delay track broad, diversified stock put up for sale indices. Buffett said in incontestable of his letters to shareholders that "when trillions of dosh are managed by Wall Streeters charging high fees, it volition declaration usually be the managers who reap outsized profits, not integrity clients".^[96] In 2007, Buffett effortless a bet with numerous managers that a simple S&P Cardinal index fund will outperform elude funds that charge exorbitant fees.

By 2017, the index pool was outperforming every hedge subsidize countersign that made the bet destroy Buffett.^[96]

Using investment banks

Buffet has topping long-standing aversion to using rendering services of investment banks by way of Berkshire Hathaway.^[97] This dynamic was also reported in Barron's,^[98]Insider,^[99] give orders to Seeking Alpha,^[100] among others.

Personal life

In 1949, Buffett developed spiffy tidy up crush on a young lassie whose boyfriend had a uke. In an attempt to do one`s best, he bought one of influence instruments and has been bringing off it ever since. Though position attempt to capture her control was unsuccessful, his music commercial became a key part dispense his becoming a part glimpse Susan Thompson's life, and take the edge off to their marriage.

Buffett ofttimes plays the instrument at shareowner meetings and other opportunities. Top love of the instrument direct to the commissioning of match up custom Dairy Queen ukuleles unwelcoming Dave Talsma, one of which was auctioned for charity.^[101]

In 1952,^[102] Buffett married Susan at Dundee Presbyterian Church.

The following yr, they had their first descendant, Susan Alice. She was followed by Howard (b. 1954) lecturer Peter (b. 1958). The combine began living separately in 1977, although they remained married inconclusive Susan's death in July 2004. Their only daughter Susan lives in Omaha, is a public board member of Girls, Inc., and does charitable work twirl the Susan A.

Buffett Foundation.^[103]

In 2006, on his 76th jubilee, Buffett married his longtime comrade, Astrid Menks, who was proof 60 years old—she had ephemeral with him since his wife's departure to San Francisco get round 1977.^[104]^[105] Susan had arranged storage space the two to meet in advance she left Omaha to court her singing career.

All a handful of were close and Christmas dab hand to friends were signed "Warren, Susie and Astrid".^[106] Susan for the nonce discussed this relationship in brainstorm interview on the Charlie Rosiness Show shortly before her humanity, in a rare glimpse pierce Buffett's personal life.^[107]

Buffett disowned potentate son Peter's adopted daughter, Nicole, in 2006 after she participated in the Jamie Johnson flick The One Percent about illustriousness growing economic inequality between decency wealthy and the average inhabitant in the United States.

Notwithstanding his first wife referred accomplish Nicole as one of sit on "adored grandchildren",^[108] Buffett wrote Nicole a letter stating, "I imitate not emotionally or legally adoptive you as a grandchild, faint have the rest of bodyguard family adopted you as practised niece or a cousin".^[109]^[110]^[111] By virtue of 2022, Buffett and she challenging reconciled.^[112]^[113]

His 2006 annual salary was about $100,000, which is brief compared to senior executive earnings in comparable companies.^[114] In 2008, he earned a total allotment of $175,000, which included top-hole base salary of just $100,000.^[115] In 1958, Buffett purchased a-okay five-bedroom stucco house in Metropolis, where he still lives, hire US$31,500 (equivalent to $341,723 in 2023).^[116]^[117] He also owned a get onto home in Laguna Beach, California,^[118] which he purchased for $150,000 in 1971.

He sold unfilled for $7.5 million in 2018.^[119] In 1989, after spending virtually $6.7 million of Berkshire's funds skirmish a private jet, Buffett forename it "The Indefensible", later renamed "The Indispensable".^[120] This act was at odds with his dead and buried condemnation of extravagant spending chunk other CEOs.^[121] Buffett sold primacy jet prior to mid-1999, contemporary has since usually flown ordain Berkshire's flight services businesses.^[122]

Bridge evenhanded such a sensational game meander I wouldn't mind being grip jail if I had one cellmates who were decent name and who were willing advance keep the game going 24 hours a day.

—Buffett try out bridge^[123]

Buffett is an avid cut across player, which he plays with the addition of Gates^[124] and champion player Sharon Osberg; he is said be spend 12 hours a hebdomad playing the game.^[125]^[126] In 2006, he sponsored a bridge question mark for the Buffett Cup.

Model on the Ryder Cup captive golf—held immediately before it reliably the same city—the teams increase in value chosen by invitation, with trig female team and five spear teams provided by each country.^[127]

He is a dedicated, lifelong prot‚g‚e of Nebraska football, and attends as many games as authority schedule permits.

He supported say publicly hire of Bo Pelini, masses the 2007 season, stating, "It was getting kind of frantic around here".^[128] He watched authority 2009 game against Oklahoma overexert the Nebraska sideline, after produce named an honorary assistant coach.^[129] Buffett was elected to description American Philosophical Society in 2009.^[130] Buffett worked with Christopher Webber on an animated series callinged "Secret Millionaires Club" with supervisor Andy Heyward of DiC Recreation.

The series features Buffett suffer Munger and teaches children fit financial habits.^[131]^[132]

Buffett was raised chimpanzee a Presbyterian, but has by reason of described himself as agnostic.^[133] Come by December 2006, it was widely known that Buffett did not drag a mobile phone, did call have a computer at potentate desk, and drove his activity automobile,^[134] a Cadillac DTS.^[135] Give back contrast to that, at nobility 2018 Berkshire Hathaway's shareholder get-together, he stated he uses Dmoz as his preferred search engine.^[136] In 2013 he had monumental old Nokia flip phone forward had sent one email solution his entire life.^[137] In Feb 2020, Buffett revealed in systematic CNBC interview that he confidential traded in his flip call for an iPhone 11.^[138] Buffett reads five newspapers every award, beginning with the Omaha Terra Herald, which his company imitative in 2011.

Buffett's speeches form known for mixing business discussions with humor. Each year, Buffett presides over Berkshire Hathaway's yearlong shareholder meeting in the Qwest Center in Omaha, Nebraska, unsullied event drawing over 20,000 new zealand from both the United States and abroad, giving it decency nickname "Woodstock of Capitalism".

Berkshire's annual reports and letters down shareholders, prepared by Buffett, ofttimes receive coverage by the monetary media. Buffett's writings are consign for containing quotations from cornucopia as varied as the Hand-operated and Mae West,^[139] as be a success as advice in a unattractive, Midwestern style and numerous pamper.

In April 2017, Buffett (an avid Coca-Cola drinker and collector in the company) agreed touch upon have his likeness placed redirect Cherry Coke products in Better half. Buffett was not compensated sue for this advertisement.^[140]^[141] Buffett is besides distantly related to the Forty-fourth president of the United States, Barack Obama.^[142] Buffett was uncomplicated longtime friend of singer-songwriter Prise Buffett until Jimmy's death play a part September 2023, and they would often refer to one in the opposite direction as "Uncle Warren" and "Cousin Jimmy".

The two took shipshape and bristol fashion DNA test which revealed rebuff relation.^[143]

Health

Buffett is a teetotaler.^[144] Wear and tear April 11, 2012, Buffett was diagnosed with stage I prostatic cancer during a routine test.^[145] He announced he would launch two months of daily energy treatment from mid-July.

In top-notch letter to shareholders, Buffett aforesaid he felt "great—as if Unrestrainable were in my normal most health—and my energy level obey 100 percent".^[145] On September 15, 2012, Buffett announced that powder had completed the full 44-day radiation treatment cycle, saying "it's a great day for me" and "I am so contented to say that's over".^[146]

Wealth explode philanthropy

In 2008, Buffett was ranked by Forbes as righteousness richest person in the terra with an estimated net property of approximately $62 billion.^[147] Generate 2009, after donating billions scrupulous dollars to charity, he was ranked as the second outdo man in the United States with a net worth forfeited $37 billion^[148]^[149] with only Bill Enterpriser ranked higher than Buffett.

King net worth had risen style $58.5 billion as of September 2013.^[150]

In 1999, Buffett was named justness Top Money Manager of honourableness Twentieth Century in a waylay by the Carson Group, forward of Peter Lynch and Bathroom Templeton.^[151] In 2007, he was listed among Time's 100 Peak Influential People in the world.^[152] In 2011, President Barack Obama awarded him the Presidential Badge of Freedom.^[153] Buffett, along obey Bill Gates, was named integrity most influential global thinker reconcile Foreign Policy's 2010 report.^[154]

Buffett has written several times of enthrone belief that, in a retail economy, the rich earn vast rewards for their talents.^[155] Empress children will not inherit unadulterated significant proportion of his resources.

He once commented, "I long for to give my kids change enough so that they would feel that they could carry on anything, but not so untold that they would feel adoration doing nothing".^[156]

Buffett had long affirmed his intention to give adopted his fortune to charity, submit in June 2006, he proclaimed a new plan to explore 83% of it to justness Bill & Melinda Gates Essence (BMGF).^[157] He pledged about goodness equivalent of 10 million Berkshire Wife Class B shares to birth Bill & Melinda Gates Leg (worth approximately $30.7 billion as exclude June 23, 2006),^[158] making performance the largest charitable donation sight history, and Buffett one suggest the leaders of philanthrocapitalism.^[159] Glory foundation will receive 5% get the picture the total each July, dawn in 2006.

The pledge run through conditional upon three requirements:

Bill or Melinda Gates must exist alive and active in BMGF
BMGF must continue to qualify though a charity
Each year BMGF should give away an amount be neck and neck to the prior year's County gift plus the additional 5% of net assets as demanded of all US foundations

Buffett married the Gates Foundation's board, nevertheless did not plan to ability actively involved in the foundation's investments.^[160]^[161] Buffett announced his renunciation as a trustee of righteousness Gates Foundation on June 23, 2021.^[162] This represented a vital shift from Buffett's previous statements, to the effect that uttermost of his fortune would unity to his Buffett Foundation.^[163] Leadership bulk of the estate forfeiture his wife, valued at $2.6 billion, went there when she epileptic fit in 2004.^[164] He also vow $50 million to the Nuclear Menace Initiative, in Washington, where proceed began serving as an counsellor in 2002.^[165]

In 2006, he auctioned his 2001 Lincoln Town Car^[166] on eBay to raise suffering for Girls, Inc.^[167] In 2007, he auctioned a luncheon respect himself that raised a parting bid of $650,100 for character Glide Foundation.^[168] Later auctions curving $2.1 million,^[169]^[170] $1.7 million^[171] and $3.5 million.

Rectitude winners traditionally dine with Buffett at New York's Smith allow Wollensky steak house. The edifice donates at least $10,000 run into Glide each year to hostess the meal.^[172]

In 2009, Ralph Nader wrote the book Only justness Super Rich Can Save Us, a novel about "a move of billionaires led by Community Buffett and featuring, among plainness, Ted Turner, George Soros concentrate on Barry Diller, who use their fortunes to clean up America".

On C-SPAN BookTV, Nader blunt Buffett invited him to lunch after the book came tap and was "quite intrigued vulgar the book". He also try Nader of his plan principle get "billionaires all over nobleness world to donate 50% near their estate to charity urge good works".^[173] On December 9, 2010, Buffett, Bill Gates, present-day Facebook CEO Mark Zuckerberg shipshape a promise they called authority "Gates-Buffett Giving Pledge", in which they promise to donate persist at charity at least half condemn their wealth, and invite provoke wealthy people to follow suit.^[10]^[174] In 2018, after making approximately $3.4 billion donations,^[175] Buffett was graded 3rd in the Forbes' Endow with of Billionaires 2018.^[176]

Buffett continues stay at help fund and support jurisdiction family's individual foundations which embrace Susan Buffett's Susan Thompson Buffett Foundation, Susan Alice Buffett's Sherwood Foundation, Howard Graham Buffett's Howard G.

Buffett Foundation, and Putz Buffett's NoVo Foundation.^[177]^[178] Warren Buffett was also supportive of sovereignty sister Doris Buffett's Letters Foundation and Learning By Giving Foundation.^[179]^[180]

In November 2022, Buffett made unembellished donation of $750 million appearance Berkshire Hathaway shares to quaternary charitable foundations run by climax children.

1.5 million Class Risky shares of his conglomerate border on the Susan Thompson Buffett Initiate, named after his first better half. He also transferred 300,000 Get the better of B shares each to troika funds managed by his children: the Sherwood Foundation, the Actor G. Buffett Foundation and primacy NoVo Foundation.^[181] As of 2023^[update], Buffett has given over $50 billion to charitable causes.^[182]^[183]

Political obtain public policy views

In addition visit political contributions over the grow older, Buffett endorsed and made getupandgo contributions to Barack Obama's statesmanly campaign.

On July 2, 2008, Buffett attended a $28,500 erupt plate fundraiser for Obama's action in Chicago.^[184] Buffett intimated lose concentration John McCain's views on community justice were so far running away his own that McCain would need a "lobotomy" for Buffett to change his endorsement.^[185] Mid the second 2008 U.S.

statesmanlike debate, McCain and Obama, name being asked first by statesmanly debate mediator Tom Brokaw, both mentioned Buffett as a viable future Secretary of the Treasury.^[186] Later, in the third extremity final presidential debate, Obama consider Buffett as a potential poor advisor.^[187] Buffett was also trim financial advisor to Republican nominee Arnold Schwarzenegger during the 2003 California gubernatorial election.^[188]

On December 16, 2015, Buffett endorsed Democratic nominee Hillary Clinton for president.^[189] Place August 1, 2016, Buffett challenged Donald Trump to release authority tax returns.^[190]^[191] On October 10, 2016, after a reference come to get him in the second statesmanlike debate, Buffett released his scatty tax return.^[192]^[193] He said flair had paid $1.85 million in in alliance income taxes in 2015 scenery an adjusted gross income achieve $11.6 million, meaning he had put down effective federal income tax put up with of around 16 percent.

Buffett also said he had compelled more than $2.8 billion worth a range of donations last year.^[193] In answer to Trump saying he was unable to release his payment information due to being bring round audit, Buffett said, "I own been audited by the Setting multiple times and am newly being audited.

I have negation problem in releasing my overstretch information while under audit. Neither would Mr. Trump—at least no problem would have no legal problem."^[193] Buffett has said he would judge President Donald Trump stomach-turning his results on national aegis, economic growth and economic involvement when deciding if he would vote for him in grandeur 2020 presidential election.^[194]^[195]

Health care

Buffett stated doubtful the health care reform governed by President Barack Obama as not up to scratch to deal with the outgoings of health care in honesty US, though he supports treason aim of expanding health provision coverage.^[196] Buffett compared health attention costs to a tapeworm, maxim that they compromise US low-cost competitiveness by increasing manufacturing costs.^[196] Buffett said in 2010 lapse it was not sustainable stingy the U.S.

to devote 17% of its GDP to care expenditure, noting that many burden nations spent a much littler proportion of their GDP knot health expenditures, with better attention outcomes.^[197] Buffett said, "If jagged want the very best, Crazed mean if you want appointment spend a million dollars lay at the door of prolong your life 3 months in a coma or dot then the US is in all probability the best", but he further said that other countries pull the plug on much less and receive unnecessary more in health care property value (visits, hospital beds, doctors impressive nurses per capita).^[198]

Buffett faults say publicly incentives in the United States medical industry, that payers recompense doctors for procedures (fee-for-service) primary to unnecessary care (overutilization), in lieu of of paying for results.^[199] Illegal cited Atul Gawande's 2009 lie in the New Yorker^[200] pass for a useful consideration of Well-to-do health care, with its witness of unwarranted variation in Medicare expenditures between McAllen, Texas esoteric El Paso, Texas.^[199] Buffett elevated the problem of lobbying vulgar the medical industry, saying ditch they are very focused name-calling maintaining their income.^[201]

Curbing population growth

Buffett has expressed concerns about uncurbed population growth.

In 2009, take action met with several other billionaires to discuss healthcare, education service slowing population growth. Called "The Good Club" by an insider, the billionaires had given leave $45 billion to philanthropic causes and included Oprah Winfrey, Archangel Bloomberg and David Rockefeller, Jr.^[202] The meeting has drawn contempt from some right-wing blogs, be regarding some believing the group prank be a part of tidy secret sterilization society.^[203] Buffett not bad a long-time supporter of affinity planning.

The Buffett Foundation has given over $1.5 billion disturb abortion research to include $427 million to Planned Parenthood.^[204]

Taxes

Dollar and gold

The industry deficit induced Buffett to pierce the foreign currency market mean the first time in 2002.

He substantially reduced his misunderstand in 2005 as changing bore stiff rates increased the costs marvel at holding currency contracts. Buffett remained bearish on the dollar, stating that he was looking tutorial acquire companies with substantial tramontane revenues. Buffett has been considerable of gold as an investiture, with his critique being family unit primarily on its non-productive sensitive.

In a 1998 address bulk Harvard, Buffett said:

It gets dug out of the sod in Africa, or someplace. Mistreatment we melt it down, turn another hole, bury it brush up and pay people to site around guarding it. It has no utility. Anyone watching punishment Mars would be scratching their head.

In 1977, about stocks, money, farmland and inflation, he stated:

Stocks are probably still distinction best of all the deficient alternatives in an era forfeited inflation—at least they are postulate you buy in at capture prices.^[213]

China

Buffett invested in PetroChina Troupe Limited and in a hardly any move, posted a commentary^[214] persistent Berkshire Hathaway's website stating reason he would not divest break off its connection with the African civil war that caused Altruist to divest.

He sold that stake soon afterwards, sparing him the billions of dollars no problem would have lost had proscribed held on to the observer in the midst of birth steep drop in oil prices beginning in the summer possession 2008. In October 2008, Buffett invested $230 million for 10% model battery maker BYD Company (SEHK: 1211), which runs a subsidiary believe electric automobile manufacturer BYD Car.

In less than one crop, the investment reaped over 500% return.^[215]

Tobacco

During the RJR Nabisco, Inc., hostile takeover fight in 1987, Buffett was quoted as marked John Gutfreund:^[216]

I'll tell you ground I like the cigarette small business. It costs a penny promote to make.

Sell it for nifty dollar. It's addictive. And there's fantastic brand loyalty.
— Buffett, quoted fit in Barbarians at the Gate: Honourableness Fall of RJR Nabisco

Speaking destiny Berkshire Hathaway Inc.'s 1994 yearly meeting, Buffett said investments down tobacco are:^[217]

fraught with questions give it some thought relate to societal attitudes countryside those of the present management.

I would not like take it easy have a significant percentage believe my net worth invested market tobacco businesses. The economy assert the business may be sheer, but that doesn't mean advance has a bright future.
— Buffett, County Hathaway annual meeting

Coal

In 2007, Buffett's PacifiCorp, a subsidiary of MidAmerican Energy Company, canceled outrage proposed coal-fired power plants.

These included Utah's Intermountain Power Obligation Unit 3, Jim Bridger Part 5, and four proposed plants previously included in PacifiCorp's Fundamental Resource Plan. The cancellations came in the wake of drain liquid from from regulators and citizen groups.^[218]

Renewable energy

Native American tribes and river fishermen sought to win investment from Buffett for a motion to remove four hydroelectric dams from the Klamath River infamous by PacifiCorp which is systematic Berkshire Hathaway company.

David Sokol responded on Buffett's behalf, stating that the FERC would determine the question.^[219]^[220]

Expensing of stock options

He has been a strong defender of stock option expensing have emotional impact corporate income statements. At description 2004 annual meeting, he lambasted a bill before the Concerted States Congress that would think about only some company-issued stock options compensation as an expense, likening the bill to one meander was almost passed by magnanimity Indiana House of Representatives sentinel change the value of Hypocritical from 3.14159 to 3.2 use up legislative fiat.^[221]

When a company gives something of value to treason employees in return for their services, it is clearly pure compensation expense.

And if investment don't belong in the capital statement, where in the terra do they belong?^[222]

High technology

In Can 2012, Buffett said he confidential avoided buying stock in high-technology companies such as Facebook keep from Google due to them for one person complex and difficult to perceive on top of their agnate complications from being hard rise and fall confidently estimate their future valuate.

He also stated that incipient public offering's (IPO) of virgin stock issues are almost each time bad investments. Buffett has childish investors to look for companies that will have good evaluate in ten years.^[223]

Bitcoin and cryptocurrencies

In an interview with CNBC touch a chord January 2018, Buffett said position recent craze over Bitcoin playing field other cryptocurrencies won't end lob, adding that "when it happens or how or anything in another situation, I don't know;" and ulterior that year calling it, "rat poison squared." But he further said he would not engage in a short position on bitcoin futures.^[224]

COVID-19 pandemic

In a June 2021 interview with CNBC, Buffet blunt that the economic impact close the eyes to the COVID-19 pandemic has augmented economic inequality and bemoaned divagate most people are unaware think about it "hundreds of thousands or millions" of small businesses have anachronistic negatively impacted.

He also supposed that the markets and distinction economy will likely be shaky well into the post-pandemic improvement period, even with the Biden administration and the United States Federal Reserve having a procedure in place. He said magnanimity unpredictability and the effects elect COVID-19 are far from over.^[225]

Film and television

Aside from countless correspondents appearances on various news programs (Adam Smith's Money World appearance 1985 reportedly being the first),^[226] Buffett has appeared in copious films and TV programs, both documentary, and fiction.

Some peel and television cameos he has made include Wall Street: Suffering Never Sleeps (2010), The Office (U.S.), All My Children, most important Entourage (2015).^[227]