Warren Edward Buffett (Omaha, August 30, 1930) is an American investor and entrepreneur. He is considered one of the biggest investors in the world, besides being the greater shareholder and Executive Director of Berkshire Hathaway. In 2017 he ranks second to Forbes magazine’s list of the world’s richest men behind Bill Gates and before the founder of amazon, Jeff Bezos with an estimated fortune of $ 75.6 billion.
Known as the “Oracle of Omaha,” Warren Buffett is known for his commitment to investment in value and his personal austerity, despite his immense wealth. His annual salary in 2006 was about $ 100,000, a figure that is at the bottom of wages compared to other senior executives at many companies. He lives in the same house in downtown Omaha, which he bought in 1958 for $ 31,500.
Warren Buffett is also a well-known philanthropist. In 2006 he announced a plan to donate his fortune; 99% of it will go to the Bill and Melinda Gates Foundation. In 2007 he was included in the Time magazine list of the 100 most influential people in the world. Buffett is also a member of the Board of Trustees of Grinnell College and other companies.
The principles of Warren Buffett’s investment:
1.- The company must be well managed.
2. The company has demonstrated ability to earn money with the probability that it will continue to do so.
3.- The company must constantly have high yields.
4.- The company must have a prudent amount of debt.
5.- The company’s business should be simple and the investor must have an understanding of the company.
6.- If it is assumed that all these thresholds are met, the investment should be made only if the price is razonalbe, with a margin of safety.
7.- Investors should think long term.
Currently, the composition of the core of its portfolio investment portfolio is as follows:
KO The Coca Cola 19.68%
WFC Wells Fargo 14.91%
BNI Burlington Northern 13.07%
AXP American Express 10.6%
PG The Procter and Gamble 9.16%
KFT Kraft Foods 6.49%,
WMT WalMart 3.6%,
WSC Wesco Financial 3.38%
COP Conoco Phillips 3.32%
JNJ Johnson & Johnson 3.02%