When most people think of the wealthiest people in the world, the name Warren Buffett invariably comes to mind. The American investor and philanthropist, affectionately known as the Oracle of Omaha, has long been a symbol of enduring success. Having built a sizable fortune through smart investments, Warren Buffett has amassed an incredible amount of wealth and has become one of the world’s most successful and influential people. But, who is the real Warren Buffett and what unique strategies has he employed to become so successful?

Early Years: From Nebraska to Columbia University

Born in Omaha, Nebraska in 1930, Warren Buffett was an unusually intelligent young man. His passion for numbers was evident early on; at the age of 11, he successfully filed his own tax return and earned a hefty $35 in the process. After high school, he went on to attend the University of Nebraska, and then transferred to Columbia University. While there, Buffett studied under the famous investor Benjamin Graham, who taught Buffett the principles of value investing.

The Buffett Way

By the mid-1950s, Buffett had developed the basics of what would become known as “the Buffett Way.” He subscribed to value investing, where he sought out companies that were undervalued and looked for businesses with strong management teams and potential for long-term growth. It was this approach that would eventually lead Buffett to become one of the wealthiest people in the world.

When Buffett began investing, he made sure not to be overzealous, instead choosing to make calculated investments in businesses/companies in which he thoroughly understood the underlying fundamentals before taking the plunge. His approach was to never place bets with money he couldn’t afford to lose, and instead to focus on ‘having a margin of safety’ and focussing on value investments. What made Buffett so successful was the fact that he was willing to wait for the right opportunity to present itself – rather than using timing, he stuck to fundamentals.

Investment Style

Regardless of whether he was investing in stocks, bonds, or whole industries, Buffett’s investment style has remained the same. He focuses on the long term and being value-oriented, meaning he looks for stocks that are priced low relative to their potential or current earnings. Because of his focus on value, he is often willing to wait years before an investment pays off. He also avoids using leverage, preferring to maintain a large margin of safety to protect himself from risk.

One of the most important concepts in the Buffett Way is diversification. Buffett believes that diversification can be an important way to reduce risk and increase returns by investing across multiple sectors. As a result, his portfolio is made up of investments in a wide range of industries and asset classes.

Notable Investments

Over the years, Buffett has made a number of interesting and profitable investments. His first major investing success came in the form of a major stake in the textile company Berkshire Hathaway, which he acquired in 1964. He then took that company and turned it into the world’s most valuable and successful conglomerates. He also invested in a number of other companies, such as Coca-Cola, American Express, IBM, and Goldman Sachs. Additionally, he is a major investor in numerous media companies, including The Washington Post, The Dallas Morning News, and Dow Jones & Co.

Philanthropy and Legacy

Despite his immense wealth, Buffett has always been extremely generous. He has donated billions of dollars to charitable organizations, such as the Bill and Melinda Gates Foundation and the Giving Pledge. His inspiring philanthropic work has made him one of the most admired and respected figures in the world.

The legacy that Warren Buffett has left behind is nothing short of remarkable. His investment strategies and principles have been studied and applied by investors around the world and have become the core of what value investing is all about. The Oracle of Omaha has offered us valuable lessons about being smart and disciplined investors, as well as being generous and humble individuals. He truly is one of the greatest investors of all time.