How Warren Buffet Made His Money.

How Warren Buffet Made His Money

Being one of the world’s most successful men, Warren Buffet built his fortune absolutely from scratch right from an early age.

We all know him not from his company, but his investment progress.

Hello, and welcome back. If you are looking for a blog to get you through the topics of finance and investment, then you are in the best place.

In this article, I will be exploring the life of Warren Buffet and bringing you the various steps he made from an early stage in finance and investment.

The beginning story of Buffet.

Like every other kid in the USA, Warren was born into an ordinary everyday home to everyday parents.

He was born in Omaha, Nebraska in 1930. The unique thing about Buffet was his interest in finance and investment, which began at an early age.

The concept of finance and investment was not discussed in school then, so he took the initiative and pushed his learning by himself into the stock world.

He was a reader and would keep on reading all the investment books he could lay his hands on. 

Particularly, he fell in love with Graham’s book, The Intelligent Investor. This book was the driving force and the platform of knowledge he needed. He was always a business-inclined child, and in his childhood and teenage age, he ventured into selling gum, coca-cola and even delivering magazines from door to door.

These jobs were not fantastic in terms of profit, but it was a platform for his future.

His investment journey


At the age of 11, Buffet who had continually kept up his business, bought his first shares. Unlike most kids who used their saved up money to do youthful things, he invested.

His first investment was three shares in a company called city service. It sold at $38 per share.

This first step was a fantastic choice which he had made because he was able to enjoy the benefit of compound interest. According to Albert Einstein, he described the compound interest as the 8th wonders of the world. “He who understands it earns it, he who doesn’t, pays it”.

The fundamental key to compound interest is time. The earlier you begin to invest, the higher the rate of return. If you desire to reach the apex of your wealth game, begin as early as you can.

Buffet had the advantage of understating compound interest right for his childhood days and also understood what investing entails. Having been well-equipped with various knowledge of investing, he worked in a grocery store to ensure that there was more money which he would put into an investment.

Back in high school, he and his friend, with a sum of $25, purchased a used pinball machine. 

They placed this in the local barbershop and, before a few months, they had made enough to own multiple machines which were spread out in three different barber shops.

He knew his goal, and one legend has it that his aim from his youth was that he would be a millionaire at 30.

The story goes on with him, threatening that he would jump off the tallest building in Omaha. Buffet said, “I always knew I was going to be rich, I never doubted it for a minute”. He had the goal, and he worked towards it.

Post high school success.


Immediately after graduation from high school he was on the course of fulfilling his dream by becoming a millionaire.

At the age of 17, Buffet has amassed more than the sum of $10,000. In the present day value, the money earned by him is equivalent to $100,000.

He was motivated to carry on with more investments, but his father wanted him to go to the university. He, however, ended up studying under Benjamin Graham, his mentor.

After the completion of college, he tried several times to land many jobs about investing under Graham but failed. After many rejections, he proceeded to work as a stockbroker for his father and had his net worth grown to the tune of $20,000 at the age of 21.

With the wealth amassed by Buffet, he never gave up his dream of working for Graham. During his engagement as a broker, he kept on analyzing stocks. Any stock he analyzed as the best, he would send them to Graham as an idea of investment.

Eventually, his dream of working for Graham came through after a few years. With a salary of $12,000, he began to work with his childhood investment idol.

After working with Graham, Buffet felt the time to move on had come. He started his own company which he named “BUFFETT PARTNERSHIP LIMITED” where he got his family and friends on board —having a capital of $105,000 which was what he required to kickstart.

He had complete dominance in the market, making money for both his friends and family with the help of his partnership.

At 26 years of age, he already has a net worth of $140,000-$174,000 which is equivalent to today’s $1.5million.

During this time, with the sum of $31,500, he bought his first house in Omaha. His partnership continued to grow during this time, and in 1957, with the birth of his third child, he operated three partnerships. It increased to 4 in 1958, and in 1959, he had his company’s partnership increased to 6. It was during this time he met with his life-long buddy who is also into investment names Charlie Munger.

One thing to take away from Buffet’s story is persistence and knowledge. If you learn to be good in what you love and do.

And you put in the time and effort to be great at it, in no time people will look for you. He met his goal at age 30 because he worked towards it, and he took risks and the failures that came his way.

Three points to remember which Buffet followed was; first, he learned about investing. Then he learned how to make money, and then finally he understood what compound investment was and began early.

If you enjoyed this blog and would want to see more of it, then hit register. Leave me a comment if you have learned any other point from the life of Buffet and finally, be sure to like and share this blog.

For more information regarding this topic, you might want to check out Warren Buffett: The Importance of Long-Term Planning

© Lifestyle Tips by Antoaneta

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