What I mean is, basically, how would I start my own investing company? I am only 17 right now, but that is my lifetime DREAM!!!!! How did Warren Buffett buy a textile company (Berkshire Hathaway), and turn it into an investing company? Or how would I go about beginning an investment company if I didn't buy out another company first? Please explain, explain, explain!!!!!
2007-12-19 07:46:37 · 4 answers · asked by The Chef- Dishin Out the Answers 2 in Business & Finance ➔ Other - Business & Finance
Buffett was already a recognized investment guru before buying Berkshire. And at the time he bought it, Berkshire was not an investment company.
Berkshire was a publicly held textile company fallen on hard times. Buffett and associated investors started buying the BRK stock just like you or I would, only with bigger bucks. ;)
When Warren and friends got control by buying half the stock, they nominated Ken Chace to be President and Warren got to be CEO.
And from that start, Buffett turned it into the holding/investment company it is today. I think if he had realized how pointless an American textile company was, he probably wouldn't have started there anyway.
2007-12-19 08:05:50 · answer #1 · answered by enoriverbend 6 · 0⤊ 0⤋
Fortunately as Buffett's so successful, there is plenty of quality info on him. I'd recommend:
The New Buffettology by Mary Buffett (former daughter-in-law).
Do GOOGLE searches on Buffett--tons of info AND make sure to go to the Berkshire-Hathaway web site. He puts his letters to investors up there and you can get the benefit of the knowledge for FREE.
Check with your library--school and city, etc. including interlibrary loan (ask a reference librarian) and get the assorted shows with Buffett being interviewed. They are FEW so it's doable.
You also need to be doing anything you can to make your own money now. Buffett did actually start out with a loan, but why bother?
Here's another KEY to "being Buffett" you have to understand TAX LAW. It's the most STUPID, BORING JUNK ON EARTH, but that was what led him to insurance, which is where he REALLY made his money. VERY SPECIAL TAX BREAKS for insurance companies.
Buffett worked his behind off and you will have to as well. There are PLENTY of people who want to emulate him or just be rich, but unless someone GIVES you the money, you are going to WORK VERY VERY HARD FOR IT.
You're absolutely NOT too young to start educating yourself AND making money so you can invest. BTW, Buffett STILL lives in the house he bought in Omaha like 30+ years ago--NOT a mansion by any stretch of the imagination (saw it in an interview with him). So you MUST live within your means, learn how to delay gratification, and KNOW WHAT IS ACTUALLY VALUABLE IN LIFE. If flash rolls and bling are what you're after, you will NEVER be able to be a jr. Buffett. Maybe a Jimmy Buffett, but not a Warren Buffett.
Be careful what you ask for--you might get it :)
2007-12-19 08:04:19 · answer #2 · answered by heyteach 6 · 1⤊ 0⤋
Warren Buffet is not dead yet and entrepreneurs like him usually live to a very old age. As a wise long term investor I am sure Warren has taken the time to think about a successor who will be able to run the company well!! Of course the price of Berkshire will fall because some people will loose faith without captain Buffet, but if the new CEO is competent it will go back up in value. Also if Buffet teaches his protege well and markets him well to the shareholders there will be nothing to worry about!!
2016-04-10 08:04:24 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Nothing in life is easy. Get an MBA and your questions will be answered.
2007-12-19 07:52:56 · answer #4 · answered by Henry 7 · 1⤊ 1⤋