Friday, January 12, 2007

Who Is Warren Buffet ?

The following information were taken from wikipedia

With an estimated current net worth of around US$46 billion, he is ranked by Forbes as the second-richest person in the world, behind only Microsoft co-founder Bill Gates.

Woodrow Wilson High School, Washington D.C. in 1947
The Wharton School, University of Pennsylvania, 1947-1949
B.S. University of Nebraska, 1950
M.S. in Economics, Columbia University, in 1951.

1951-1954 Buffett-Falk & Co., Omaha - Investment Salesman
1954-1956 Graham-Newman Corp., New York - Securities Analyst
1956-1969 Buffett Partnership, Ltd., Omaha - General Partner
1970-Present Berkshire Hathaway Inc, Omaha - Chairman, CEO

1943: (13 years old)
Buffett filed his first income tax return, deducting his bicycle as a work expense for $35.

1945: (15 years old)
In his senior year of high school, Buffett and a friend spent $25 to purchase a used pinball machine, which they placed in a barber shop. Within months, they owned three machines in different locations.

1950: (20 years old)
Buffett enrolled at Columbia Business School after learning that Benjamin Graham and David Dodd, two well-known securities analysts, taught there.
During this time, Buffett also pledged to the Alpha Sigma Phi fraternity. He is still active today, donating every year to the fraternity.

1951: (21 years old)
Buffett discovered Graham was on the Board of GEICO insurance at the time. After taking a train to Washington, D.C. on a Saturday, Buffett knocked on the door of GEICO's headquarters until a janitor allowed him in. There, he met Lorimer Davidson, the Vice President, who was to become a lasting influence on him and life-long friend.[10]
Buffett graduated from Columbia and wanted to work on Wall Street. Buffett offered to work for Graham for free but Graham refused. He purchased a Texaco gas station as a side investment, but that venture did not work out as well as he had hoped. Meanwhile, he worked as a stockbroker. During that time, Buffett also took a Dale Carnegie public speaking course. Using what he learned, he felt confident enough to teach a night class at the University of Nebraska, "Investment Principles." The average age of the students he taught was more than twice his own.

1952: (22 years old)
Buffett married Susan Thompson.

1954: (24 years old)
Benjamin Graham offered Buffett a job at his partnership with a starting salary of $12,000 a year. Here, he worked closely with Walter Schloss.
Susan had her second child, Howard Graham Buffett.

1956: (26 years old)
Benjamin Graham retired and folded up his partnership.
Buffett's personal savings are now over $140,000.
Buffett returned home to Omaha and created Buffett Associates, Ltd., an investment partnership.

1957: (27 years old)
Buffett had three partnerships operating the entire year.
Buffett purchased a five-bedroom, stucco house on Farnam Street for $31,500.
Susan was about to have her third child.

1958: (28 years old)
Buffett had five partnerships operating the entire year.

1959: (29 years old)
Buffett had six partnerships operating the entire year.
Buffett was introduced to Charlie Munger.

1960: (30 years old)
Buffett had seven partnerships operating the entire year.
Buffett asks one of his partners, a doctor, to find ten other doctors who will be willing to invest $10,000 each into his partnership. Eventually, eleven doctors agreed to invest.

1961: (31 years old)
Buffett had seven partnerships operating the entire year.
The partnerships were: Buffett Associates, Buffett Fund, Dacee, Emdee, Glenoff, Mo-Buff, and Underwood.
Buffett revealed that Sanborn Map Company accounted for 35% of the partnerships' assets.
Buffett explained that in 1958, Sanborn sold at $45 per share when the value of the Sanborn investment portfolio was $65 per share. This meant buyers valued Sanborn at "minus $20" per share, and buyers were unwilling to pay more than 70 cents on the dollar for an investment portfolio with a map business thrown in for nothing.
Buffett reveals that he earned a spot on the board of Sanborn.

1962: (32 years old)
Buffett's partnerships, in January 1962, had in excess of $7,178,500 of which over $1,025,000 belonged to Buffett.
Buffett merges all partnerships into one partnership.
Buffett discovered a textile manufacturing firm, Berkshire Hathaway. Buffett's partnerships began purchasing shares at $7.60 per share.

1965: (35 years old)
When Buffett's partnerships began aggressively purchasing Berkshire they paid $14.86 per share while the company had working capital (current assets minus liabilities) of $19 per share, this did not include the value of fixed assets (factory and equipment).
Buffett took control of Berkshire Hathaway at the board meeting and named a new President, Ken Chace, to run the company.

1966: (36 years old)
Buffett closes the partnership to new money.
Buffett wrote in his letter “unless it appears that circumstances have changed (under some conditions added capital would improve results) or unless new partners can bring some asset to the partnership other than simply capital, I intend to admit no additional partners to BPL.”
In a second letter, Buffett announced his first investment in a private business — Hochschild, Kohn, and Co, a privately owned Baltimore department store.

1967: (37 years old)
Berkshire paid out its first and only dividend of 10 cents.

1969: (39 years old)
Following his most successful year, Buffett liquidated the partnership and transferred their assets to his partners. Among the assets paid out were shares of Berkshire Hathaway.

1970: (40 years old)
As chairman of Berkshire Hathaway, began writing his now-famous annual letters to shareholders.

1973: (43 years old)
Berkshire began to acquire stock in the Washington Post Company. Buffett became close friends with Katharine Graham, who controlled the company and its flagship newspaper, and became a member of its board of directors.

1979: (49 years old)
Berkshire began to acquire stock in ABC. With the stock trading at $290 per share, Buffett's net worth neared $140 million. However, he lived solely on his salary of $50,000 per year.
Berkshire began the year trading at $775 per share, and ended at $1,310. Buffett's net worth reached $620 million, placing him on the Forbes 400 for the first time.

1988: (58 years old)
Buffett began buying stock in Coca-Cola Company, eventually purchasing up to 7 percent of the company for $1.02 billion. It would turn out to be one of Berkshire's most lucrative investments, and one which it still holds.

2002: (72 years old)
Buffett entered in $11 billion worth of forward contracts to deliver US dollars against other currencies. By April 2006, his total gain on these contracts was over $2 billion.

2006: (75 years old)
Buffett announced in June that he would give away more than 80%, or about $37 billion, of his $44 billion fortune to five foundations in annual gifts of stock, starting in July 2006. The largest contribution will go to the Bill and Melinda Gates Foundation.

2007: (76 Years old)
In a letter to shareholders, Buffett announced that he was looking for a younger successor or perhaps successors to run his investment business.[13] Buffett had previously selected Lou Simpson, who runs investments at Geico, to fill that role. However, Simpson is only six years younger than Buffett.

[edit] Personal life
Buffett married Susan Thompson in 1952. They had three children, Susie, Howard, and Peter. The couple began living separately in 1977, though they remained married until her death in July 2004. His daughter Susie lives in Omaha and does charitable work through the Susan A. Buffett Foundation and is a national board member of Girls, Inc.
On his 76th birthday Buffett married his longtime companion, Astrid Menks, who had lived with him since his wife's departure. Interestingly, it was Susan Buffett who arranged for the two to meet before she left Omaha to pursue her singing career. All three were close, and holiday cards to friends were signed "Warren, Susie and Astrid" (as per Roger Lowenstein's book, Buffett: The Making of an American Capitalist). Susan Buffett briefly discussed this relationship in an interview on the Charlie Rose Show shortly before her death, in a rare glimpse into Buffett's personal life.[14]
Buffett is an avid player of the card game bridge. He has said that he spends 12 hours a week playing bridge.[15] He often plays with Bill Gates.
In 2006, he sponsored a bridge match for the Buffett Cup.[16] In this event, modeled on the Ryder Cup in golf (and held immediately before it and in the same city), a team of twelve bridge players from the United States took on twelve Europeans.
Buffett likes to eat at Gorat's Steak House in Omaha, where he always purchases a T-bone steak (cooked rare), a double order of hash browns, and Cherry Coke. He used to drive a 2001 Lincoln Town Car[17] which he auctioned on eBay to raise money for Girls Inc.[18] He currently drives a Cadillac DTS.[19]
Warren Buffett is currently working on an animated series with DiC Entertainment chief Andy Heyward. According to information presented by Buffett at the Berkshire Hathaway annual meeting on May 6, 2006, the series will feature Buffett and Munger in roles and the series will teach children healthy financial habits for life. Cartoon drawings of Buffett and Munger were displayed throughout the events during the weekend and the special movie before the meeting began was in animation form by Heyward.
One of the reasons he left the Wharton School at University of Pennsylvania is because he believed he knew more than the professors.
In December 2006 it was reported that Mr. Buffett does not carry a cell phone, does not have a computer at his desk, and drives his own car.[20] However, in May 2007 Richard Santulli, CEO and Chairman of NetJets, stated on the Nightly Business Report that Mr. Buffett now uses a cell phone, however he still does not use email.[citation needed]
He plays the ukulele.
He has described himself as an agnostic.[21]

Wednesday, January 10, 2007

Can I Play In This Flattened World ?

Probably, if you think that I am going to write something on global outsourcing, Thomas Friedman or Chinese manufacturing or Indian service sector Inc's, Hold on your thought and proceed...

World is Flat, what it means to me as an individual? Skim through this blog and pour your comments if it really makes some sense. (Simple Arithmetic)

Initially I was analyzing 2006 global market trend in order to write a counter blog for my earlier blog “Global Market Phenomena”. But as an outcome of analysis I got better investment ideas.

The following are the ROI from known influencing global market indices for the year 2006.

(Global Up Trend - Sorted in order of 2006 Year ROI)

Most of us know there was a global downtrend during May -June 06. The following is an interesting statistics.

(Global Down Trend - Sorted in order of 2006 H1 ROI)

Here comes the recovery of indices after the historical global fall.

(Global Recovery and Up Trend - Sorted in order of 2006 H2 ROI)

And here comes the statistical trend chart of influencing global market indices for year 2006.

Based on above statistics, it crystal clear that China is out performing in emerging markets. Even during global down trend, china didn’t get affected much. A closer look on the above chart infers that china market trend is unique and totally different from other countries. Except China, rest of the market followed the similar pattern of rise and fall.

India, Mexico and Brazil are successor emerging market next to china.

Now back to main topic, World Is Flat? Whether the playing field is really becoming flat for a person like me? It looks like even a person like me can play a wise game in this flattened field.

Let me try something during 2007. I would like to have my own portfolio which has a mix of promising stocks from leading emerging market like China, India, Mexico and Brazil etc.

I dont know whether there is a way to do this ?!

Portfolio with diversified global markets, that’s sounds interesting and exciting, isn’t?

I don’t know whether my wish will come true, Lets C :)- !!!!!!

Even Impossible spells I’M Possible.

Happy Investing :)-