Like stock trading, seeking the legend of Warren Buffett!

Warren Buffett (1August 30, 930-), an American investor, entrepreneur and philanthropist, is known as the god of stocks and is honored as "the prophet of Omaha" or "the sage of Omaha". At present, his net worth is about $62 billion. According to the 2008 global rich list published by Forbes magazine,1On August 30th, 930, Warren Buffett was born in Omaha, Nebraska, USA. Warren Buffett has a strong sense of investment since he was a child. He likes stocks and numbers better than anyone in his family. He is very rich. When he was five years old, he set up a stall at home to sell chewing gum. A little bigger, he led his friends to the stadium to pick up big second-hand golf balls and then resell them. Business is quite prosperous. When he was in middle school, he not only worked as a newsboy after school, but also partnered with his partner to rent a pinball game machine to a barber shop owner to earn extra money.

194 1, he just turned 1 1 and jumped into the stock market and bought the first stock in his life.

65438-0947 Warren Buffett entered the University of Pennsylvania to study finance and business management. However, he felt that the professors' short theories were not enough. Two years later, he transferred to the University of Nebraska, Lincoln, and received a bachelor's degree in economics within one year. 1950 Buffett's application to Harvard University was rejected. He was admitted to Columbia University Business School and studied under the famous investment theorist Benjamin Graham. Under Graham, Buffett is at home. Graham opposes speculation and advocates evaluating stocks by analyzing the profitability, assets and future prospects of enterprises. He taught Buffett a lot of knowledge and know-how. The talented Buffett soon became Graham's favorite student. 195 1 year, 2 1 year-old Buffett received a master's degree in economics from Columbia University. When he graduated, he got the highest A+. 1952, Buffett married Susan Thompson, and their parents were old friends for many years. When studying at Northwest University, Susan and Buffett's sister Roberta were roommates in the same dormitory. When Buffett dropped in on her and proposed to her, Susan left the university and married him. Mrs Buffett grew up only one and a half blocks from her present home.

From 65438 to 0957, Buffett's capital reached $300,000, but by the end of the year it had risen to $500,000.

From 65438 to 0962, the capital of Buffett's partner company reached 7.2 million US dollars, of which 1 10,000 belonged to Buffett himself. At that time, he merged several partner enterprises into a "Buffett Partners Limited". The minimum investment has been expanded to more than 654.38 million dollars. The situation is a bit like the private equity fund or private equity investment company in China now.

From 65438 to 0964, Buffett's personal wealth reached $4 million, while the funds he was in charge of had reached $22 million.

1966 in the spring, the US stock market was bullish, but Buffett was restless. Although his stock is soaring, he finds it difficult to find cheap stocks that meet his standards. Although the crazy investment in the stock market has brought speculators a windfall, Buffett is unmoved because he believes that the price of stocks should be based on the growth of company performance rather than speculation.

1967 10, Buffett's funds reached $65 million.

From 65438 to 0968, Buffett's stock achieved the best result in history: it rose by 46%, while the Dow Jones index rose by 9%. Buffett's funds rose to $6.5438+0.04 million, of which $25 million belonged to Buffett.

1968 In May, when the stock market was soaring, Buffett informed his partners that he was retiring. Subsequently, he gradually liquidated almost all the shares of Buffett Partners.

From June 65438 to June 0969, the stock market plummeted and gradually evolved into a stock market crash. By May 1970, every stock had fallen by 50% or more than at the beginning of the year.

During the period from 1970 to 1974, the American stock market was like a deflated ball with no vitality. Sustained inflation and low growth have brought the American economy into a period of stagflation. However, Buffett, who was once lost, was secretly glad to see the money coming-he found too many cheap stocks.

1972, Buffett once again focused on the newspaper industry, because he found that owning a famous newspaper was like owning a toll bridge, and any passerby had to stay and buy money. Starting from 1973, he stole the Boston Globe and Washington post from the stock market, and his involvement greatly increased Washington post's profits, with an average annual increase of 35%. After 10 years, Buffett's investment of 10 million dollars rose to 200 million.

1980, he bought 7% shares of Coca-Cola at the unit price of 10.96 USD per share. By 1985, Coca-Cola changed its business strategy and began to withdraw funds and invest in beverage production. The unit price of its shares has risen to $5 1.5, a fivefold increase. As for how much money has been earned, this figure can shock investors all over the world.

1992, Buffett bought 4.35 million shares of General Dynamics, an American high-tech defense industry company, at a price of $74 per share. By the end of the year, the share price rose to 1 13 yuan. Buffett's stock worth $322 million six months ago is now worth $49 1 10,000.

By the end of 1994, 1994 had developed into a Berkshire industrial kingdom with $23 billion. It is no longer a spinning mill, but has become Buffett's huge investment and financial group. From 1965 to 1998, Buffett's stock grew at an average annual rate of 20.2%, which was 0 percentage point higher than that of Dow Jones index 10.65438. If anyone invests 10000 dollars in Buffett's company in 1965, he will get a return of $4.33 million through 1998. In other words, whoever chose Buffett 33 years ago was on the rocket to get rich.

On March 1 1, 2000, Buffett published this year's annual letter on Berkshire's website-a heavy letter. The data shows that the net income of Berkshire, the investment fund group chaired by Buffett, fell by 45% last year, from $2.83 billion to $654.38+$55.7 million. Berkshire's A-share price fell by 20% last year, which was the only decline in the 1990s. At the same time, Berkshire's book profit only increased by 0.5%, which was far lower than the growth of Standard & Poor's 2 1 in the same period, which was the first time since 1980.

On August 26th, 2004, Susan Buffett, Warren Buffett's wife, died of a stroke while visiting friends with him. Susan Buffett, with a fortune of $3 billion or a 2.2% stake in Berkshire Hathaway, died at the age of 72. Mr. and Mrs. Buffett got married in 1952, but since 1977, when Susan moved from her hometown to San Francisco to develop her music career, they began to live apart. The two never announced their divorce. They often travel together, and Susan often attends the shareholders' meeting of the company held in Omaha, her hometown.

On the evening of March 1 2007, Berkshire Hathaway, the flagship investment company of Warren Buffett, announced its financial year 2006 results. The data shows that due to the hurricane "breaking the promise", the company's main insurance business achieved profitability. Last year, Berkshire's profit increased by 29.2% with a profit of 655. Earnings per share were $765,438+044 ($5,338 in 2005).

During the 42 years from 1965 to 2006, the average annual growth rate of Berkshire's net assets reached 2 1.46%, with a cumulative increase of 361156%; In the same period, the average annual growth rate of S&P 500 companies was 65,438+00.4%, and the cumulative growth rate was 64.79%.

Buffett is the greatest investor in history. By investing in the stock market and foreign exchange market, he has become one of the richest people in the world. The value investment theory advocated by him is popular all over the world. Value investment is not complicated. Buffett once summed it up as three points: treating stocks as many miniature business units; Treat market fluctuations as your friends rather than enemies (profits sometimes come from loyalty to friends); The price of buying stocks should be lower than you can afford. "In the short term, the market is a voting calculator. But in the long run, it is a weighing machine "-in fact, it is not difficult to master these ideas, but few people can persist for decades like Buffett. "Buffett never seems to try to make money from stocks. He bought the stock on the assumption that the stock market would close the next day or would not reopen for five years. In the view of value investment theory, once you see market fluctuation and think it is profitable, investment becomes speculation, and nothing affects investment more than gambling mentality. "

On June 25th, 2006, Buffett announced that he would donate his private wealth totaling $365,438+700 million to charity. This huge sum will be donated to the charity foundation founded by Bill Gates and the Buffett Family Foundation respectively. Buffett's donation of $365,438+$700 million is the largest private charitable donation in the United States so far.

The Gates Foundation issued a statement saying: "We are flattered by the decision of our friend Warren Buffett. He chose to donate most of his wealth to the Bill and Melinda Gates Foundation to solve the most challenging inequality problem in the world. "

In addition, Buffett will donate 6,543,800 shares to the charity fund founded for his late wife and 350,000 shares to the charity fund of his three children.

Buffett is called "the most respectable person except his father" by Americans.

In the biography of Buffett written by Roger lovinstein, the first article is a short article by Bill Gates, the richest man in the world. Gates wrote: "His jokes are funny, and his diet-lots of hamburgers and cokes-is excellent. In short, I am a fan of Buffett. " Gates is really a fan of Buffett. He firmly remembers Buffett's investment theory: buy stocks at the lowest price and wait patiently. Don't expect to do big business. If the price is low, even medium-sized enterprises can make a lot of money. Buffett's 5+ 12+8+2 method can be roughly summarized as 5 investment logics, 12 investment points, 8 stock selection criteria and 2 investment methods.

Five investment logics

1. Because I regard myself as the operator of the enterprise, I become an excellent investor; Because I regard myself as an investor, I become an excellent business operator.

2. A good enterprise is more important than a good price.

3. Pursue a consumer monopoly enterprise all your life.

4. What ultimately determines the company's share price is the company's substantial value.

There is no time to sell the best enterprises.

12 investment point

1. Make use of the stupidity of the market to make regular investments.

2. The buying price determines the rate of return, even for long-term investment.

3. The compound growth of profits and the avoidance of transaction costs and tax burden have benefited investors immensely.

I don't care how much a company can earn in the next year, only how much it can earn in the next five to 10 years.

5. Only invest in enterprises with high certainty of future income.

6. Inflation is the biggest enemy of investors.

7. Value-oriented and growth-oriented investment concepts are interlinked; Value is the discounted value of the future cash flow of an investment; And growth is just a forecasting process to determine value.

8. The investor's financial success is directly proportional to his knowledge of the investment enterprise.

9. The "margin of safety" helps your investment in two ways: first, it buffers possible price risks; Secondly, you can get a relatively high return on equity.

10. It is foolish to own a stock and expect it to rise next week.

1 1. Even if the chairman of the Federal Reserve secretly tells me the monetary policy for the next two years, I will not change any of my actions.

12. Ignore the ups and downs of the stock market, don't worry about the changes in the economic situation, don't believe any predictions, don't accept any inside information, and only pay attention to two points: a. What stocks to buy; Buying price.

Eight investment criteria

1. must be a consumer monopoly enterprise.

2. The product is simple, easy to understand and promising.

3. Have a stable business history.

4. Operators are rational and loyal, and always put the interests of shareholders first.

5. Financial stability.

6. High operating efficiency and good returns.

7. Low capital expenditure and abundant free cash flow.

8. The price is reasonable.

Two investment methods

1. Punch the card for life, and check the following figures once a year: a. Initial return on equity; B. operating gross profit; C. debt level; Capital expenditure; E. cash flow.

2. When the market overestimates the price of holding stocks, short-term arbitrage can also be considered.

In a sense, punching cards and holding shares for life constitute the most unique part of the Ba-style method. This is also the most attractive part. Buffett's financial management method: "Three Want and Three Don't" The following is the "Three Want and Three Don't" financial management method that is the essence of Buffett's investment philosophy: invest in enterprises that always put the interests of shareholders first. Buffett always favors those enterprises that are stable in operation, pay attention to integrity and have high dividend returns, so as to avoid stock price fluctuations to the maximum extent and ensure the preservation and appreciation of investment. As for those enterprises that always want to squeeze the blood and sweat of investors through rights issue and additional issuance, they are all turned away. We should invest in resource monopoly industries. Judging from Buffett's investment composition, road and bridge, coal, electricity and other resource monopoly enterprises account for a considerable share. This kind of enterprise is generally the first choice for foreign capital to enter the market for mergers and acquisitions, and its unique industry advantages can also ensure stable income.

We should invest in enterprises that are easy to understand and have good prospects. Buffett believes that all stocks invested should be self-aware and have good industry prospects. Unfamiliar and unpredictable enterprises are not tempted even if they are hype.

Don't be greedy. During the period of 1969, the whole Wall Street entered the stage of crazy speculation. Faced with a record stock market, Buffett calmly sold all the stocks when the stock rose to 20%.

Don't follow the trend. In 2000, so-called network concept stocks appeared in stock markets all over the world, but Buffett said that he did not understand high technology and would not invest. A year later, global high-tech internet stocks collapsed.

Don't speculate Buffett's mantra is: it is foolish to own a stock and expect it to rise the next morning.