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On July 3, 2006, Warren Buffett was driving the US Bank in Omaha, walked down, and opened his safe deposit box. He took a piece of paper, a certificate for 121,737 aspects of Berkshire Hathaway stock. It costs about $ 11 billion. Money from selling parts, a part of his Berkshire holdings, is the first tranche of his program at Give almost all his wealth.
Bank visit is a bookend in Buffett’s life, a suitable event in the story’s financial signal of the human life that is widespread in the world. He told wealth At the time it reminds him of a visit to the same bank, then called Omaha National, almost 70 years ago, an event that in other financial books in Buffett. He was 6 years old. Her father was setting a savings account for her and put $ 20 on it.
Between two bank visits, Buffett made Berkshire Hathaway, made it the greatest Conglomerate in America, and became famous in the world. On May 3, he signed the end of that extraordinary run, informing that he Give the CEO reins to his long Lieutenant Greg Abel at the end of this year.
The buffett leaves an unchangeable RECORDS. He achieved a 19.9% average annual return of Berkshire Shareholders from 1965 to 524, or about 524, or about 524 percent of the original investors, including himself. In the 2020s his wealth reached over $ 200 billion, making him the richest person in the world – if he didn’t Given most of his stock.
Thus the obvious questions with transfixed Investors in decades: How is buffett binding $ 20 to over $ 200 billion? Why don’t others do this? How could he see the secret? What is the secret?
Tempted it to find answers to the aphorisms buffett coinces very: “Fearing when others are selfish and greed if others are scared.” “It’s too much to buy a beautiful company at a fair price than a fair company in a beautiful price.” “Buying only one thing that is perfectly happy to keep if the market will be shut down for 10 years.”
He believes that they are extreme, but they are not the key to his success. The key is, he never stopped looking for the key. If asked to explain his success, he always said that it was simple “reasonable.” It’s very easy. But strong people change their beliefs if dictating the reality, and most of us find that it is good to do so hard.
Buffett can do this. Her maxims seemed as if he saw that they had shipped a tablet of stone, but he actually knew it. He was a child when he started learning difficult ways. As a Teen invested He tried to check technical analysis of charts in stock prices seeking “candles” or “bearishicks” or “bearishicks signals.” That doesn’t work, so he delivered it. He tried what almost every one investor intending, market time, choose the right chances of buying and selling. That doesn’t work either, so he left it.
He even made unreasonable, emotional decisions. At the age of 11, in 1942, he bought his first stock: three parts of the service of the towns preferred for himself and three parts for his brother Doris. (The service of cities is the oil and gas company currently known as CICO.) The price has fallen easily. If it was finally recovered and raised above the price he paid, he sold – and the price continued to increase, soon quintupling. He didn’t forget that he had to ignore the price he paid, that he couldn’t change, and just focus on the future company. He also knows that if he runs out of money to others, he is better confident that he can do it well. His biographer, Alice Schroeder, wrote that the buffett “would call this stage with one’s most important in his life.”
Most people find it harder to change their beliefs whether to dictate the truth. Buffett can do this.
Many years ago, as a successful fund manager more imposed, he dared to change his investment philosophy again. In the business of Columbia business from 1949 to 1951, Buffett became a devout student of Benjamin Graham, Coauthor of the famous investment guide Security analysiswho counseled to buy stocks only in severe bargain prices based on financial ratios. But the business partner in the buffett, Charlie Mungerconvinced him that basic good businesses can be worth buying even if they don’t scream at bargains. In 1972, Buffett bought the candies to see those who remained a great advocate for Berkshire.
He never stopped challenging his beliefs. She saw the dotcom bubble in the late 1990s for what it was and said. He does not invest in internet stocks, he explained, because they are impossible. The Silicon Valley Cheerleaders shook their heads, lamented by that old Warren the Tech Revolution passed by him.
When the crash was hit, he had every right to smug himself, but later he found the greater than the greater the greater than the greater than the greater than the greater than much more. In 2016 he started buying Tech Royalty: applegrowing largest grasping stock portfolio in Berkshire.
Wall Street analysts are often warned that apple stock is disabled. Ben Graham disagrees. But Buffett sees a very poor business – more useful, with a big competition “moat” around its products. He told his shareholders in 2023, “it happens to be a better business than anyone we own.” (Berkshire Bored most of Apple’s parts in the course of 2024But it remains the largest equity equity that holds the end of the year.) In the new annual Berkshire meeting, Buffett said, “I am ashamed of saying that [Apple CEO] Tim Cook makes Berkshire more money than I’ve done for Berkshire Hathaway.“
While always again how much money is, the buffett is also changing how to give it. In many years he planned to start donating his wealth (“more than 99%”, he said) his death through a foundation he set. But in 2006, at 75, it was good for the age when most of the CEOs retired, his mind changed. But he starts to donate immediately, usually in the bill & melinda formula with a small foundation and the foundations set by each of his adult children. (Bill Gates today committed a unique commitment to the help of donations, and Buffett’s blessing; see “The $ 200 billion mounts of bill: within the largest bet on the person made by a philanthropist“)
Why is transition? Once again he molded his views to suit reality. He is A good friend at the gates’ For 15 years and impressed their jobs on the foundation, sufficiently sufficient to handle many values he would send them. They are also more young than himself. His conclusion, as he explained it wealthPure Buffett: “What is more reasonable, whatever you want to do, than to find someone better done?
That brought him to his safe deposit box to Omaha, alone, deleting a piece of paper worth $ 11 billion. He can easily send it to the foundation of the entrance. We cannot know his emotions in that moment, as he showed an important part of the work of his life, but it was difficult to believe that he had swallowed hard or shaken. He is likely to smile.
Three good pivots
Warren Buffett is better than most change course – a fact that explains his success and his long life.
Give “butts to the SIGAR”
Buffett began his career as a disciple of Benjamin Graham, who recommends buying stocks only at stone prices. But the buffett business partner, Charlie Munger, convinced him that some strong companies deserve to buy even if they do not have bargains for better buffett investment.
Got in tech
Despite his build a fixed track record, Buffett avoids investing in tech companies, arguing that their future value is impossible to estimate. But then he knows Apple, under the CEO Tim Cook, as a traditional good business with a big competition “moat.” It has been one of the farmers’ holds of Herkshire Hathaway.
Provide better provider
The buffett has long planned to give most of his wealth after his death. But the accomplishments of Bill & Melinda Gates Foundation changed his mind – and attracted about $ 40 billion in his money. As he said wealth“What’s more logical, in whatever you want to do, than find someone better to use than you do?”
This article appears in June / July 2025 issue of wealth With the heading “Secret Warren Buffett in success: He knows how to change his mind.”
This story originally shown Fortune.com
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