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   August 30, 1930, Warren Buffett was born in Omaha, Nebraska, Warren Buffett
investment awareness very early age, he was deeply in love with stocks and numbers
far in excess of the family of any person. His stomach is full of money in the Road,
children, the age of five on a street vendor selling chewing gum at home. Slightly later,
he led the junior partner to pick up wealthy used golf course, and then sell them the
business quite by the fire. High school, in addition to after school to do newsboy, he
also will partner with the partner to the barber billiards game rental store owner who
earn extra money.
In 1941, just entered the age of 11, he shares awarded by the sea, bought his first
share at.
In 1947, Buffett entered the University of Pennsylvania to study the financial and
business management. But he was a professor of metaphysics are not quickly, after
two years of leave without saying goodbye and, after admitted to the Department of
Finance, Columbia University, coach of the famous Benjamin investment theory study.
Graham. In Graham Ha, Buffett like a duck. Graham anti-speculation, and stands for
the profitability of enterprises, assets, and to assess the future prospects of the stock.
He taught Buffett's wealth of knowledge and know-how. Talented Graham,
Buffett quickly became the star pupil.
For Harvard University in 1950, Buffett was turned away.
In 1951, the 21-year-old Buffett graduation, he received the highest A +. However,
after graduation he was repeatedly rebuffed, could not find a suitable job.
In 1956, he returned home, young and vigorous commitment to their own hand at
Buffett. On one occasion, his father suddenly Yujingsizuo a friend's house,
declared himself to be a millionaire before age 30, "if not to achieve this
goal, I went from the tallest building in Omaha on the jump." Soon, a state
relatives and friends to scrape together nearly 105,000, including his one hundred U.S.
dollars, set up his own company ─ ─ "Buffett Limited."
Buffett started off very carefully. In less than a year, he already has a five partner
companies. Buffett even when the boss all day hiding in the home in Omaha, buried
in the data heap. He only do one job a day, below its intrinsic value is to find a cheap
small stocks, then buy, wait for the prices. This is what Graham taught him the secret.
These are far less than its working capital stock really brought him huge profits,
Graham's "Golden Touch" in 100 test 100 test.
In 1957, Buffett in charge of the capital 30 million, but the end of the year rose to 500
thousand U.S. dollars.
In 1962, Buffett's partner of the company's capital reached 720
million, of which 1 million are Buffett's personal. He was a merger of
several partners to a "Buffett Partners Limited." Minimum
investment to expand to 10 million. Situation is like now that China's
private equity funds or private investment company.
In 1964, Buffett's personal wealth at 400 million, but this time he has been
in charge of the funds up to 22 million U.S. dollars.
In 1962, -1,966 in the 5 years, his company's performance than the Road.
Jones industrial average 20-47 percent, and Buffett himself is from the
"Herald of Omaha," received the "Successful
Investment business operators, "the name first. Buffett to fulfill his
"millionaire" obscurity.
The spring of 1966, the U.S. stock market bullish, but Buffett's shares even
though he was restless in soaring, but found it difficult to find a cheap line of his
standard stocks. Although the stock market madness of speculation to the speculators
line brought a fortune, but Buffett is swayed because he thinks the stock's
price should be based on earnings growth rather than speculative basis.
October 1967, Buffett in charge of the funds to reach 65 million U.S. dollars.
In 1968, Buffett's shares made it the best result in history: an increase of
59%, while the Dow Jones index was up 9%. Buffett in charge of the funds rose to
100 million zero-four million U.S. dollars, of which there are 25 million U.S. dollars
May 1968, when the stock market a triumph, Buffett has informed the partners, he
faded into the background. He then gradually clearing up Buffett's partner
almost all the stock.
June 1969, the stock market straight down, gradually evolved into the stock market
crash, to May 1970, each stock should drop 50% over the previous year, or more
Between 1970 -1974, the U.S. stock market like a deflated ball, not the least bit angry,
continuing inflation and low growth in the U.S. economy has entered a
"stagflation" period. However, Buffett has once lost secretly
pleased because he saw the unusual sources of income will keep coming ─ ─ he
found too many cheap stocks.
In 1972, Buffett has eye on newspaper industry, because he found it has a brand-name
newspapers, it is like have a toll bridge, no passing must leave money from. 1973, he
secretly eating in the stock market, "Boston Globe" and
"Washington Post" He's involved in making the
"Washington Post" substantial increase in profits, average
annual growth of 35%. 10 years later, Buffett invested 10 million U.S. dollars rise to
two million.
In 1980, he used 120 million U.S. dollars to 10.96 U.S. dollars per share, unit price,
buy 7% stake in Coca-Cola. By 1985, Coca-Cola changed its business strategy, capital
began to withdraw, into beverage. The stock unit has grown to 51.5 U.S. dollars,
turned 5 times. As for the profit, the number of investors can make the world
1992 Ba Feite to 74 U.S. dollars an purchased 435 million American high-tech
defense industry companies - General Dynamics stock, stock end of the year rose to
113 yuan. Ba Feite six months ago, have 32,200 million shares had a value of 49,100
million U.S. dollars
The end of 1994 has developed into a 23 billion U.S. dollars of Berkshire industrial
kingdom, it is no longer a textile factory, it has become Buffett's huge
investment banking group. From 1965-1994, the average annual value of stock
Buffett 26.77%, higher than the Road. Jones index of nearly 17 percentage points.
Anybody who invested in 1965, Buffett's company 10 thousand U.S.
dollars, then to 1994, he received 11.3 million U.S. dollars could return, that is, who is
over 30 years ago chose Buffett will come to get on the rich rocket.
March 11, 2000, Buffett in Berkshire's Web site on this year's
annual letter - a heavy letter. Figures show, Buffett's investment funds
group chaired Berkshire, last year's net income fell 45%, from 2.83 billion
U.S. dollars fell to 1.557 billion U.S. dollars. Berkshire's A share price fell
20 percent last year, is the only time the 90s down; while Berkshire's book
profits grew by only 0.5%, far lower than the same period the growth of the S
& P 21, 1980 the first time since the lagging behind.

【Course】 life
     His childhood love Investment
Buffett was born August 30, 1930, Buffett's father, Howard had to meddle
in the securities brokerage business, which from an early age how to be a kind of
influenced Buffett. Buffett, when more young, have the desire to become rich. His
children when they declared themselves grow up to become very, very rich. 6 years
old, he would earn by selling cola 5 cents. In peacetime, he was asked his father door
to door selling soda.
7-year-old Buffett, high fever was admitted to the hospital. His bed, filled with figures
with a pencil on paper. He said to the nurse, the number representing his future
property. He said: "Now I do not have much money, but one day I will be
very rich. My photos will also appear in the newspaper."
Buffett is like a child "earn 100 U.S. dollars in the 1000 move"
a book. He also refers to the book proposal, and several friends one by one trying to
save money: clean-up ticket to the Happy Valley field; collection for sale such as golf.
To 14 years old, Buffett can invest 1,200 dollars into a piece of 40 acres of Nebraska
Learning investment skills
Buffett does not invest in systems to determine their own before he and most investors
do the same as technical analysis, to listen to inside information. This is the real
Buffett, he is not born to know the price-earnings ratio of 14 times to buy Coca-Cola
In the under 20 years old, he also "play the stock market" - he
knew the teachers hold AT & T stock (which is the typical blue chips), then
choose the short-selling. Boys the same age usually only watch sports newspaper read,
he read the financial pages of the stock chart. After graduating from high school,
Buffett was persuaded to go to the University of Pennsylvania Wharton School to
study, but he was always soaked in Philadelphia, where the exchange of stock charts
and find out inside information. Later, he applied to Benjamin. Graham taught at
Columbia University student qualifications. In Colombia, Graham's
Socratic teaching to benefit from Buffett. He began to gradually form their own
investment system.
In 1957, the well-known investment consultants Fisher published "ordinary
common shares and non-profit," a book. Buffett himself door to reading
Fisher for advice, he thinks the idea of Fisher is impressive. In the 20th century, the
late 50s, he gradually formed its own investment system.
Buffett's character
Buffett once joked joke, even if Greenspan quietly whisper to him "to cut
or raise interest rates", he will not change the fundamental investment
experience and shaken state of mind.

Buffett and his investment in the story between the rich
Hathaway annual shareholders meeting, the venue is like a big family gathering,
Buffett, one family, Buffett's daughter, breaks in the hallway crying, the
first sale of the company's set of shirts.
"New York Times" has reported an Niangaodeshao Jewish life
by the division intends to donate the savings for the church build a new tower story.
The Qur'anic 名叫克莱波克, learned in 1946, in Omaha there is a local
gathering of the Jewish God of job vacancies, salary is not thin, so he and his wife
Dorothy took office with the pedicle. After he was gathering by the teacher, Dorothy
City continues to engage in the creation of children's books, she wrote a
book "Let's talk about God" to put it down
Buffett's wife, Susie, when she learned of this book On the outside of the
living in two blocks, called on the warm peach Melody. So the fate of the Warren
Buffett and Kelaiboke together. However, the two beliefs are different, and Susie
Buffett are born devout Christian family, was Buffett became agnostic, does not
detract friendship the two men.
That year, Buffett is considered a small fortune, though not a nationally known
investment guru, but in Austria and Kazakhstan the local code has a minor celebrity.
And by the teacher and his wife have a 65 thousand U.S. dollars on hand in savings,
but then know nothing about investing, his wife told him by the division, said:
"Buffett money to take care of it." Buffett himself says he wants
to hand money over to him the kind of person who is losing some money, even if
people can make friends. And by the division is such a person, he asked Buffett how
to help him, but financial. In this way, 30 years have flashed by him that sum of
65,000 U.S. dollars of investment has been converted into Hathaway stock to the end
of 1996 at the right time by the division of the investment has swelled to 25 million
U.S. dollars.

Warren Buffett wisdom
There are three stock market secret of success:
First, try to avoid risk, to preserve principal;
Second, try to avoid risk, to preserve principal;
Third, firmly bear in mind the first, second.
"Select few can see-saw battle in the long-term revenue generated
above-average stock, the majority of your capital will be concentrated in those stocks,
regardless of the stock market or short-term rise, persist in holding, stable and
"Assessment of investment value, not to see whether a certain trade
profitable, but by the specific company's competitive advantage, and to see
how long to maintain this advantage, so bring an adequate return to
"To become a good investor does not require a high IQ", is
needed is "out of the public" capability. "
"Many fraudsters are liars phase, they have a particular smell."
To see who is the liar, you can find out who is using the EBITDA figure from the start.
(EBITDA full name "Earnings Before Interest Taxes, Depreciation and

Buffett's investment logic
------ Because I regard myself as a business operator, so I become good investors;
I regard myself as investors, so I became good entrepreneur.
------ Good business is more important than a good price.
------ Lifetime pursuit of consumer monopoly.
------ Final stock price is the company's real value.
------ There is no time for the good of the company disposed of.

Basic principles of Buffett investment
1. Business principles
Buffett said: "We invest the time to ourselves as business analysts, rather
than market analysts or financial analyst, nor securities analysts, he will focus on
possible collection of his intention to acquire the business of the relevant information
"consists of:
(1) whether the enterprise in order to understand simple
(2) the company's operating condition is stable over the past
(3) long-term development of the company's vision is to be optimistic
2. Operating principles
In considering the acquisition of businesses, Buffett attaches great importance to
quality management. Of course, that honesty and dry mixing. Specifically, he
considered the main factors:

(1) whether the rational management
(2) whether the management shareholders frank
(3) whether the management will be able to fight "corporate body acts
3. Financial principles
(1) pay attention to returns on equity, not earnings per share
(2) calculation of "shareholder value"
(3) companies seeking high interest rates
(Company to retain one of each element must ensure that every 1 U.S. dollar foreign
exchange market
4. Market principles
Decided to share the stock market, analysts according to the characteristics of each
stage to the market price as a benchmark, re-evaluate the value of company stock, and
thus decide whether to stock trading and holding. All in all, rational investment has
two elements:
(1) how the real value of enterprise
(2) whether the company's share price is far below its real value, buy the
company's stock?
Buffett to buy first and what was found, and then decide whether the right price and at
a suitable price can profit when you buy, it also reflects the intrinsic value lies.

Buffett's 13 business magic
1, the same operation as the Partnership Berkshire. Charlie Munger and I are
shareholders of the company as assets of the channel, instead of our operating assets
of the owner.
Second, and Berkshire has a long-term business strategy in line, the vast majority of
the company directors to own most of the assets in the company, and to eat its own
Third, long-term business objective is to Berkshire maximum rate of earnings per
4, first consider the direct ownership of those businesses to create cash in and get the
average return on capital of enterprises. Second, mainly through the purchase of
common stock can be traded with companies like part of the business.
5, extremely important to the shareholders of the profitability of enterprises, help
them make judgments.
6, I hope that the benefits have not been revealed by return on capital is reflected in
the company's intrinsic value.
7, very little debt, or are trying to long-term fixed-rate loans way.
8, do not ignore the long-term economic benefits to the shareholders to a certain price
to buy the business and achieve economic diversification.
9 to retained profits to shareholders is equal to the market value of retained profits as
a measure of efficiency standards.
10, and we only get paid the same amount of business value, we will issue common
stock. Not to sell the company by issuing shares as part of the value of the entire
enterprise because it is a fundamental contradiction exists.
11, no matter how the price, do not sell a good company owned by Berkshire, would
rather suffer for our overall performance.
12, we focus on the business strengths and weaknesses of an objective and fair
disclosure to shareholders. Our policy is to tell you without reservation, to learn the
business realities. As a manager, frankly is very useful. CEO who misleads others in
public will make their final go astray.
13, a good investment plan as a good product or business acquisition program as a
precious and valuable, but also constrained by the size of funds.

Buffett letter to shareholders who
The company's operation and development of very few people are
completely in accordance with the will of man; the contrary, I think the profit and
revenue growth is often not proactive. I do not know Charlie is not only the growth
next year, even for our next quarter's performance also predicted no
specific figures. Two of us often those who claim to predict the company's
growth figures of the CEO are skeptical, and when their figures are accurate to
become a reality, our concerns are even more profound. Because those often
undertaken to achieve a certain number of managers, may also figure in the last
minute fabrication.
About Corporate Governance: "Yes, I still love you, but I will leave
In fact, as early as 2000 years ago, Jesus had talked about this issue. Jesus,
"a rich man," to say that appreciation of the waste of money that
the rich steward said: "Please transfer your work clearly, because you can
not do housekeeper." Accounting role and employee loyalty in a recent 10
years is a little bit of shrinkage. In the era of stock market bubble bursting in air, the
quality of their CEO, and practice with the rise and fall of stock prices. By the late 90s
of last century, CEO who does not like traffic jams in the same highway rampage, no
It is noteworthy that, in fact, most of the CEO in their daily lives are likely to be a
friendly neighbor, even a child you will be entrusted to people and property; but in the
company's office, they have become unscrupulous people They deception,
receiving high salaries but did not create any wealth, and they said: "I did a
snow melt, but I had to drift with the river."
In theory, the company's board of directors should play to stop their evil
CEO role. I Annual Report 1993 has said: "Board members should always
remember that they represent a major shareholder of invisible, and should for the
long-term interests of shareholders to make every effort to do things." This
phrase means that When the CEO are in mediocre or bad work, the Board must be
able to get rid of their control, regardless of my CEO how cute personality and fun
demeanor. The Board should be like that, like the courage of 18-year-old bride, groom
when 85-year-old millionaire asks the bride, if not the money she would love him?
Young beauty replied: "Yes, I still love you, but I will leave
In the 1993 annual report I said: "When capable but the greed of the CEO
his hand too long, the Board should promptly grabbed their hands." I said
this from the future, there are many pairs of hands CEO have been out into the
pockets of shareholders, but seldom to be grabbed for. Why are these smart, gracious
and elegant board come to such a tragic end? I think the main reason is not the
loopholes in the law ... ... but because my so-called "board
In an atmosphere of harmony Board's regular meeting, almost impossible
to make a good tutor, received superior education, a gentleman raised his hand and
said: "I think we should replace the CEO," or said: "I
do not agree with CEO decision-making and representation, "especially
when the CEO are the so-called internal and external team of consultants are present,
just finished an exciting presentation. This is embarrassing and needs of courage (as at
the banquet in front of everyone's face is struck, like burp and visual).
This is why I in the 1993 annual report Zhichu: Board members must be words and
actions can maintain independence and freedom, must be "proficient, job
interest and on behalf of shareholders interests". But in the past 40 years, I
have the 19 board of directors of listed companies spent time, and about 250 directors
have dealt with, but found that most directors are the lack of at least 1 ~ 2 I have
mentioned the essential quality. As for myself, I must sadly admit to you: in many
cases, when I realized that the proposal is contrary to the CEO are the interests of
shareholders, I also just choose silence. At such times, the group will overcome the

Warren Buffett may be said to be the world's most successful, best-known
investment guru, and his impressive investment records so many people of the dump,
about his investment strategy reports and books abound. Here we quote the full text
published in the March 13, 1998 the "Reference News"
newspaper article entitled "Fighting shares the sea without leaving defeat
─ ─ Buffett by you Huiyanshizhu" to reveal to you a part of Warren
Buffett's investment approach, look at the investment philosophy he
Business investment is easy to understand
"If you do not hold a stock of 10 years of preparation, so even the 10
minutes are not holding this stock," which is the investment guru Warren
Buffett's basic attitude for stock investments.
Never hit record deficit
Such as the Warren Buffett of Berkshire Hathaway's 32 years of annual
investment performance and the American Standard - Poor's 500 stock
price index than the performance can be found in one of the 29 years Buffett beat the
index, only three years behind the index, more valuable is one of the five-year bear
trend when the U.S. stock market retreated into the occasion, Buffett has hit year after
year, "never loss" records. So Buffett's investment
philosophy not only for him to create an astonishing 23 billion U.S. dollars of wealth,
the stock selection method is also very worthy of global investors to learn.
Buffett's stock selection method is the basic school teacher to master the
Graham (Ben Graham) and 菲 利 普 费 希 尔 (Philip Fisher). The former to
"quantitative       analysis,"       which,       the      latter    a
"qualitative" as good, Buffett is set both in the Dacheng.
Graham's first "safety margin" (Margin Of Safety) of
prudent investment concepts, he believed that the real value of the stock value at the
end of Intrinsic value), the existence of such stock that is "safety
margin", so he suggested that investors will be energy for identify
undervalued stocks, regardless of broader market performance. As the quantitative
analysis of his contribution has been recognized for his later father of financial
analysis. Graham "no loss" of the investment philosophy, but
also to future pursued a model by Warren Buffett.
Fisher is advocating investment growth rate is higher than average, relative growth
and has excellent profit management company. He and Graham biggest difference is
that Fisher read the financial report that just is not sufficient to determine whether to
invest, but as far as possible from people familiar with the company to obtain
first-hand information, this approach has become Fund manager stock picking
prerequisite before. Buffett sucked two investment methods to develop them.
With Buffett's investment portfolio to the end of 1996 (Table omitted) to
illustrate, in which eight major holding company Berkshire Hathaway of the total
market value of 27.75 billion U.S. dollars in market value of 87% stake, if this such
shares by the end of 1996, return date to be calculated, the 14-month portfolio return
and further rose to 37.72 percent.
Focus on niche moving steadily
This observation holds eight stocks Buffett, almost every stock is a household name
the world's leading companies, including Coca-Cola, the world's
largest beverage company, Gillette razor will hold 60% of the world to facilitate the
razor market, American Express Bank American Express Card and
traveler's checks are an essential tool for cross-border travel, Wells Fargo
has the largest commercial real estate market in California and among the top ten
banks in the United States, the Federal Home Loan Mortgage Corporation is the U.S.
the two major residential lenders, one of Disney acquired Capital Cities / ABC, after
to become the world's largest communication and entertainment companies,
McDonald's is also the world's largest fast-food industry, the
Washington Post is one of America's most respected newspaper , are far
higher than the profitability of the industry.
Analysis of the common characteristics of these enterprises, enterprises of all is that
each one has a strong market niche, Buffett has made these companies have so-called
"concession"           (Franchise),     and      with    the    general
"commodity" (Commodity) different. Buffett on such a
concession but a simple definition, a consumer can not buy in a store a commodity
(such as Coca-Cola or Gillette razor), although there are other similar competing
products, but consumers will still be across the street to find this commodities. And
the advantages of such products in the foreseeable future are difficult to change, and
this     is    his    "long-term         investment,"        or   even
"permanent investment" fundamentals.
More importantly, companies such as Warren Buffett's business prospects
have quite the "OK", so he is relatively sharp decline in
investment risks, he was prone to many institutional investors to buy shares of a 200
kinds of practices quite objectionable, because the company excessive number of
cases, managers simply can not penetrate into every company's operating
condition, results of some of the funds actually increased the risk of loss.
The sharp rise in recent years, many high-tech stocks, Buffett also admitted that
because he could not know more about this industry, so he
"avoid" technology stocks. Herein because the stock market
have a number of technology companies, but no one to grasp a few companies which
will eventually come to the fore, and its involvement in high-risk investments, as
"moving steadily" to invest in his own familiar territory, as
Buffett's faith is "easy to understand the investment