Saturday, April 30, 2011


Warren Buffet’s visit to India generated spectacular enthusiasm and created sensation. Not only Indian investors but also Indian industrialists, Media, investors, teachers and students have made a beeline to listen to his advice. But Buffet himself has said that he has not come here to teach Indian. They are not required to be taught. Indian is one of the most intelligent groups of the world. Ajit Jain, his prodigy, is one of the most valuable gift of India to him, accompanied him and also participated in discussion with students.. Today’s Indian know exactly how to confront problems and dig out prospect much better than most Nations of the world, he added.

Buffet was born in 1930 in Omaha, Nebraska, the son of a stockbroker and Congressman. Nobody, including himself, thought in his early years that he would be the world’s most successful investor in future.. As a boy, irrespective of his family background, he delivered newspapers to make extra money and this probably sparked his interest in the media where he has made several successful investments including the Washington Post Company, a stock that has made him a lot of money and which he vows never to sell. Buffet is loved and respected not only because he is one of the richest persons of the world but for his humanitarian attitude towards life. His humility, sincerity of purpose and compassion has won respect throughout the world. Speaking to Business school students of India Buffet mentioned that to be a successful investor terrific IQ is not necessary. The most important requirement for an investor is sensible temperament and robust common sense. A successful investor must learn to value business. His preference for value stock is wellknown.

From his young age Buffet was a determined person. Imbued with a determination to make good and an entrepreneurial nature, Warren dabbled in several part time businesses but his destiny was chartered early in the piece when, after graduating from the University of Nebraska, he studied business at the Columbia Graduate Business School .His Guru was Benjamin, Graham who shaped up his foresight. About India, where his presence is comparatively minuscule and includes recent tie-up with Bajaj Allianz for distribution of motor insurance products, Buffet said that he was looking at investments in large countries like India., Buffet said that he was looking at investments in large countries like India. Saying away from Indian enterprise so long was a mistake , Warren Buffet said. But he also conceded that none from India also contacted him so long.. Sooner or later the mistake would be surely rectified but no time frame has been fixed yet, he added.

Like many legend his first attempt to get a job ended in failure. He tried to get a position with Graham’s firm and was at first unsuccessful. Finally he got the job and learned a lot about stock investment from the Master. Graham eventually retired and Buffet started a limited partnership in Omaha, using capital contributed by family and friends. The partnership was a great success and Buffet is said to have averaged an annual rate of return for the partnership in excess of 23 per cent, far in excess of the market. Buffet was born and raised during the time of great depression. By the time he grew up, USA was returning back to normalcy and was getting ready to jump to prosperity. Buffet availed the opportunity with meticulous discipline. He never overspent. His philosophy of life was money earned by him was not meant for him alone. It is to be shared with the society. To him society did not mean America but the world of have-not this attitude of his endeared him with mass and class.

Buffett, after several years, decided to wind up the partnership, returning the lucky investors their capital and their share of the profits, and bought an interest in Berkshire Hathaway, a textile company, giving his original investors the chance to invest. The smart ones joine3d him. This attitude reflected Buffet’s sincerity towards his friends and colleagues. Contrary to popular belief his early days at Berkshire Hathaway were not great. The company was in an industry facing real challenges from exports and high manufacturing costs. Warren Buffett had not, however, forgotten what he had learned under Graham, and arranged for the company to buy out two Nebraska insurance companies that changed his business fortune. The business of insurance is a hard one but under Buffett, the company has become, not only a successful share investor, but a leading provider of insurance. Buffet always look for shares of solid companies with tremendous future prospect, having capable and honest management with a difference. His favourites enterprises are mostly large value based companies with service orientation and mass based. He preferred Insurance, Media, infrastructure, cold drinks and finance companies. Despite his great regards for the business acumen of Bill gates Buffett never owns any stock of Microshoft. However he donated most of his money for charity to be managed by Bill and Melinda gates.

Buffett ,, struck up a friendship with Charles T Munger, a lawyer and investor and Charlie Munger eventually joined Warren at Berkshire Hathaway as his Vice-Chairman, alter ego, and friend. Warren Buffett is always the first to acknowledge the contribution that Charlie Munger has made to Berkshire Hathaway. Under Buffett and Munger, Berkshire Hathaway has become an investment giant that wholly owns a number of successful companies that include, Geico corporation, Nebraska Furniture Mart and See’s Candy Shop. Warren Buffet is known for his lavish praise on his colleague. He recently told that Ajit Jain, his colleague at Berkshire, is the greatest gift of India to him. Ajit Jain has most intelligent Business Mind much better than his own, he declared in a meeting in India.


Warren Buffet has become a legend and is generally ranked, along with his mentor, Benjamin Graham, first in a stellar cast of investors that includes Peter Lynch, John Neff, and Philip Fisher. Buffet, however, was different from his master for his exceptional philosophy of life. He also earned money, created vast wealth but used very little out of that and felt happy. He did not keep his enormous wealth for himself or for his family . he distributed it to the people wo need it most. He excelled his Master for his philosophy towards life. He earned his billions and, in his life time, donated most of it for charity. He donated his wealth to a Charitable Trust to be managed by Melinda Gates and Bill Gates , another richest person of the world. Warren Buffet is not going to invest in India immediately. He has come here to study the environment and to request his fellow Indian rich persons to spare at least fifty percent of their personal wealth for the cause of poverty. Buffet advised not to buy share of any enterprise unless investors understand the dynamics of that business. During great Dot Com boom he kept himself away from tech companies . Many of his share holders expressed reservation for his aloofness from the tech world. But later on when the boom was burst they heave the sigh of relief understanding his vision well. Perhaps Buffet would start investment in India in future after he understand business philosophy of Indian businessmen and Government’s attitude towards business enterprise. The greatest thing is Buffet is bullish in US economy followed by India and China. He wanted investors to make money not only for their personal gain but for the gain of the world economy and to eradicated poverty. His investing advice to people is to select value stock and value mutual fund and keep it for decade to get benefit.


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