Warren Buffett

Albert Costa

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Quick Bio

• Born in 1930 in Omaha

• Son of republican congressman who owned a brokerage business

• Very entrepreneurial youth, newspaper delivery “business” or selling pinball machines

• Made his first investment at age 11 (bought three shares for himself and three for his sister

• Went to Wharton for two years but transferred to Nebraska to finish BBA degree

• Post graduation, after a few years in Omaha, he moved to New York just to work with Ben Graham

• Started Buffet Partnership in 1956. After 13 very extremely successful years he closed the fun to focus on

family and other interests

• Acquired Berkshire in 1970 which is currently ranked #4th most valuable company in the US

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Warren at Work: A Happy Workaholic

• “Tap dances” to work at 84 years old

– His partner, Charlie Munger is 90 years old

• Focus & authenticity

• Life-long learning journey

• Disciplined investing process

• Simplicity:

– Does not use email

– Delegates

– Holding company has 24 employees

• Met lifelong friends at work

– Charlie Munger, Bill Gates, Katherine Graham

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Warren’s Self

• Developed self-awareness & empathy

– Dale Carnegie course

– Habit of writing down key decisions and motivations

• Built his qualities

– Developed list of habits and proactively pursued them

– Avid learner: reads five newspapers every day

• Self-control & confidence

– By only doing what he knows he understands

• Frugal

– Leads a simple life comparable to any of us

– Lives in the house he bought in 1952 for $30,000

– His car is old, believe me!

• Personal hobbies

– Bridge

– Ukelele

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Contribution to the Community

• Spreading knowledge

– Teaching night class at the Nebraska university

– Currently welcomes thousands of university students to Omaha

– Shares his views of the world in annual letters to shareholders

• Spreading wealth

– Donated 99% of his wealth to the Gates Foundation

– Launched Giving Pledge campaign to encourage wealthiest people in the world to donate most of their wealth to philanthropic causes.

• Spreading Opportunity

– Very active in the 60s and 70s in anti segregation movements in Omaha: Resigned from Rotary club, sponsored Jews in Omaha country club, supported Luther king

– Strong supporter of higher number of women in top leadership roles. Required a 50% / 50% men / women ratio on our visit to Omaha

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Warren’s Family & at home

• Acted Independently based on clear sets of values

– Sons went to public schools

– Encouraged sons to pursue their passions

• Howard is a farmer; successor to Warren Buffest as non executive chairman of Berkshire Hathaway

• Peter is a renowned musician

• Susan has focused on charitable work

• Life integration abilities initially weak….

– Worked at home for six years

– Spent many nights and week-ends reading investment reports

• Did not bring her wife on-board: she stayed up late at night listening to music

• ….but has “improved” over time

– Stopped Goldman Sachs investment negotiations in 2008 to have ice cream with his grand kids

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Lessons

• Passion: A workaholic can be authentic and happy

• Sets boundaries: physical, temporal and cognitive– Does not use email– Delegates significantly. Does not micro-manage– Knows what to prioritize

• Continuous learning– Outside world– Self-awareness and empathy

• Committed to society, economically and politically

• Frugal