Warren first found Benjamin Graham

When he has launched a book in 1949, the name of the book is “The intelligent investor”.

• Warran started liking benjamin’s ideas.
• He started studying about details of the individual companies.
• He thought he will study at Stanford University.
• He got rejected in admission from Stanford University.
• It was good news after rejection anyways, that he found the Benjamin teaches at Colombia University.
• He took admission to that University.
• Benjamin was not only a teacher at Colombia University, he has his own farm named Newman Graham corp.
• Graham in his class takes examples of real companies. He shares his investment ideas. and student runs to buy mentioned company shares.
• Benjamin’s partner Jerome Newman doesn’t like this staff.
• Benjamin told his partner we are already earning more money.
• Warran was the 1st student who got A+ in Benjamin’s class.
• Benjamin has never given A+ to any student.
• Benjamin was chairman of a company named “Government employee insurance company”.
• The company name then changes to Geico.
• It was an insurance business where Warran has invested most of the amount.
• He earned more profit from the insurance business.

To invest he wanted to know in details of the company.

• One day he went to the company’s office, and he meets the company president’s assistance whose name was Lorimer Davidson.
• Warran started asking a question to question.
• After that, he has invested 65% of the total amount, in this company Geico.
• After 1 year shares of Geico became 1.5 times.
• Warren withdraws all the amount.
• Warren was sad because he could not impress girls with his investing skills.
• In 1950, Warren’s sister fixed a date with a girl for Warren. Named Susie Thompson.
• Susie was already in a relationship with a boy named Milton Brown.
• Luckily Susie’s dad doesn’t like the boy Milton.
• Warran meets her father Susie regularly and created an impression.
• Finally, Warren married Susie in 1952.
• In honeymoon, Warren has taken the company reports booklet.
• In 1958 Warren has bought a house for 38000$.

• Which he thinks that he has done a foolish job.
• He can invest the amount in company shares where he can get more return.
• After he is a billionaire, he is still staying in the same house.
• Warren wants to work with Benjamin in his company.
• Benjamin was a Jew (Jewish people or Judaism) so he gives jobs only to Jews.
• After 3 years Benjamin has appointed Warren to his company.
• Warren was the 1st employee who was not jew.
• Warren was so happy that before joining the company he came 1 month early to New York in the benjamins office.
• For this job, Warren was getting 1000$ in a month.
• Benjamin soon knows that Warren is a good investor.
• In 1959 Benjamin thought that he will take retirement, he told Warren to take care of the office.
• Warren rejected the proposal, and at the age of 26 Warren has taken retirement.
• He thought that he will work from home from now onwards.
• He opens a company name “Buffet associates limited“.
• In this company, his 7 family members and friends have invested $1,05,000 and Warren has invested only 100$.
• The deal is that Warren will invest this money in another company, but nobody will ask which company he has invested in.
• If anybody wants to withdraw money they can do transactions only in December and profit and losses will be split.
• People are thinking that Warran is making fraud.
• But now we know Warren that it was not like that.
• After paying the Warren fees. from 1957 to 1961 they get 10.2% returns more compare to index funds.
• Warren became very famous for managing money.
• By 1961, he has opened 10 partnership firms.
• In 1962, he has combined all these partnership firms.
• And made a 1 firm named Buffet partnership limited.
• At the age of 32, he has made 1 million dollars from all this partnership.
• He has achieved the self-made goal that he will be a millionaire before the age of 35.
• Warren uses Cigar Butt Strategy.
• For example, if someone throws Cigrate, from those Cigrate you can take 1 or 2 more pops.
• We should search those companies which are almost going to shut down.
• People get more Pessimistic and its share price goes so down that we can buy shares at low prices and we can earn profit.
• This strategy can be used in a small amount strategy.
• But when Warren’s portfolio started growing, he could be able to use this strategy.
• He cannot find a small company where to invest.
• Once at a dinner party he found a person named Charlie Munger.
• They both have the same interest so they connected easily.
• Charlie challenged Warren’s strategy that why to buy the share of the company going at loss or shutdown.
• It is better to buy stocks of good growing share when its stock price is a little less than the intrinsic value.
• Warren and Charlie they both follow this strategy as of now.
• From this strategy, the net worth as of 2021 is 10,500 crores USD.