The History & Psychology of Warren Buffett

From a very early age young Buffett was obsessed with making money
and had a very clear dream of becoming the world's greatest
investor.

Born during the depression when his father was close to bankruptcy,
Warren learnt about the value of money and the importance of being
financially secure at an early age.

Even before his teens, Warren knew that he wanted to be rich, very
very rich. As early as elementary school and later on in high
school, he would tell his classmates that he wanted to become a
millionaire before the age of 35 (when he turned 35, his net worth
exceeded US$6 million). Inspired by his dream, he started
researching on the secrets of wealth creation.

Through his readings, he found and memorized a book called 'A
Thousand Ways to Make $1,000'. At the age of six, he started buying
coke bottles at 25-cents per six-pack and selling them at 5-cents a
bottle, giving him a 16% gross profit, as he would tell himself.

At the age of 13, he got a job delivering newspapers and through
innovative marketing and distribution strategies, he served five
hundred customers a day (he hired the other neighborhood kids to do
the delivery for him).

At the age of 11, he took all his savings and started investing in
the stock market. His first investment was three shares in a
company called 'City Service'.

While most kids his age were reading comic books, Warren spent his
time reading company annual reports. By the age of 14, he invested
in pinball machines, which he installed in restaurants all over his
town. He was earning $175 a week, as much as the average 25-year
old was earning in 1944.

Warren later mastered the art of investing by modeling two of the
world's greatest investors during his time, Benjamin Graham (the
father of Value Investing) and Philip Fisher (the father of Growth
Investing). By combining the ideas of both geniuses and further
refining them, Buffett has become the most powerful investor in the
world!

This short history and the written insights of the psychology of
buffet should serve as an inspiration and cornerstone to anyone who
is determined to be rich and wealthy.

To your Success