Warren Buffett is a successful American business magnate, one who has invested in multiple and various successful business lines operating locally and internationally. According to CEOWORLD magazine Billionaire’s Index, Buffett is ranked as the top 10 wealthiest people in the world with a net worth of about US$111 billion. His high net worth reflects his successful business investment over the years.
He developed an interest in business at a young age, which influenced his career and the course he studied at the university. Buffett initially enrolled in the Wharton School of the University of Pennsylvania in 1946 and later completed his higher education course in the University of Nebraska.
He later proceeded to Columbia Business School where he developed his business philosophy around value investing. Through his American multinational conglomerate, Berkshire Hathaway, Buffett owns about 60 companies operating in various industries. Buffett’s investment success stems from his interest in business and core business values, business philosophy and investment strategy, and a secure investing style. Why is Buffett a Great Investor?
Warren Buffett has over the years demonstrated attributes that define him as an astute investor and businessman. An Interest in Business and Core Business Values
From a young age, Buffett demonstrated an interest in business, a characteristic that set the foundation for his investment orientation, career choice, purposive education, and core values. While assessing the importance of having an interest or a passion in a particular career, Forbes business magazine highlighted that passion facilitates a person’s commitment to his work and self-motivation (Gold, 2019). By having a passion for specific fields or careers, people are likely to enjoy their engagement in such fields and do what it takes to succeed.
Correspondingly, having an interest in one’s field facilitates a sense of job satisfaction and the desire to succeed. Passion in investment and business has been the fundamental drive in Buffett’s strategy as exemplified by his key business values, philosophies, investment strategies and the level of effort and resources he invested to succeed. Therefore, having an interest in business and investment helped Buffett to choose and focus on an appropriate careers that worked to his strengths, making it easy for him to achieve self-motivation and engagement.
The influence of his interest in business and investment over his career can be assessed in the context of his educational trajectory and how it aligns with his career choice. His interest in business and investment influenced his career choice and the type of education he chose. Initially enrolled in the Wharton School of the University of Pennsylvania in 1946 and later completed his higher education course at the University of Nebraska.
He later proceeded to Columbia Business School where he developed his business philosophy around value investing. As such, his educational experience aligns with his career choice because he developed an interest in business at a young age. His educational experience provides a solid fundamental structure for the strategic decisions he makes during investment. For instance, his ability to assess and evaluate firms before investment partly stems from his educational experience. He can use assessment tools such as SWOT and Porter’s five forces analysis among other tools to assess the value of firms before buying their shares, leading to smart and effective investment decisions.
Based on this interest in business, he analyzed existing businesses, leading to core value investment values that have brought him success over the years. He bought his first shares from the Cities Service when he was 11 years. The stock price was 38 per piece at the time. His experience from this investment exposed him to America’s business environment. From the moment onset, he developed core investment values that have been influencing his business decisions to date.
Firstly, he observed that investors should buy stock in companies that demonstrate solid fundamentals. Correspondingly, he observed that people should invest in firms that demonstrate reliable and sustainable growth potential over an extended period. A company’s outcomes within a short duration cannot be controlled and may not reflect its true value. As such, the focus of the evaluation is whether the firm can hold its value in the long term and deliver financial success to investors within that period. He also believes that people should invest in companies that demonstrate strong potential for sustained growth over the years. Again, this attribute cannot be assessed in the short-term period but is based on past performances over extended periods. Business Philosophy and Investment Strategy
Warren Buffett’s business philosophy is one of the important outcomes of his interest in the business. His […]
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