Investor Profile: Warren Buffet's Early Years

Warren Buffett was the only son of the Howardstay with him for years and he shared it often with
Buffett and Lelia Stahl. Leila worked as both a clerkothers. Having bought three stock shares which cost
and secretary and after her marriage has ahim $38 he immediately saw that stock price fall to
homemaker and mother. Howard worked as an$27, and then increase to $40. Fearing he may lose all
investment broker and spent four terms in Congresshis money he sold his shares and made a small profit
as a U.S. representative. He was elected toof $5. Much to Warren's dismay the stock continue
"Congress in 1942 with a pledge to keep FDR fromto increase in price and remained stable at $200. He
"fasten[ing] the chains of political servitude aroundlearned the value of being patient and believing in his
America's neck."own decisions were solid factors in determining
He marked himself an oddball by returning a pay raisesuccess in investing.
to the Treasury and by subjecting each piece ofWarren Buffett loved number crunching - his love for
legislation to a simple test: "Will this add to, ormath and money combined with the everyday
subtract from, human liberty?". Howard Buffett wasencouragement of his father, in an investment firm
an extremely conservative man. While in Washingtonenvironment inspired Warren to attend Wharton
he was part of an elite organization, the John BirchSchool of Business. After two disappointing years he
Society, which fought against communism and liberalrealized he knew substantially more than the
rebels.coursework could ever offer.
Presently, the John Birch Society is associated withHe made the trip back home to Omaha and begun
the extreme right of American Politics. Warren wasclasses at the University of Nebraska. Soon after
very close to his father often following him to work.Buffet stumbled upon a text that would change
And his father made good use of his presence,himself and the world of investment forever. Warren
employing Warren to write prices and quotes on theread Ben Graham's The Intelligent Investor. Almost
board in his investment firm. His close bond with hisinstantaneously Buffett was hooked and resigned
father was further encourage but a tense relationshiphimself to becoming a student of Graham.
with his mother. Leila was prone to immense angerLuckily, for the investment world, Harvard Business
and violent outbursts.school failed to accept Warren and he went on to
Warren learned early that it was best to just avoidattend Columbia University where Graham was a
her. Regardless of their relationship, she seemed toprofessor of business. Graham and Buffett shared
have given birth to a full grown entrepreneur.similar beliefs in regards to investing and they soon
Warren's childhood is full of anecdotes whichbecame fast friends.
exemplify his early ability to make money.Graham believe that profit could be made through
When Warren was six he bought and sold bottles ofinvesting in companies that were below cost or
Cola making an easy 5 cent profit on each six pack.undervalued in the market. In 1954 Graham offered
He continued his business savvy in Washington Dc,Warren a job for $12,000 a year at his firm.
where he worked several paper routes. After savingBuffett spent two years learning from his revered
close to $1200 and moving back to Omaha heteacher gaining skills, confidence, and a net worth of
bought and then rented acres of farmland. Other$140,000. After Graham retired and his company was
childhood business ventures included pinball machines,closed, Warren once again returned to Omaha to
horse racing tip sheets, and buying and selling stock.open his own business - Buffett Partnership.
At 11 years old he would learn a lesson that would