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#2 Warren
Edward Buffett
Net Worth: $40.0 billion
Source: Investments, Berkshire Hathaway
Self made
Age: 75
Marital Status: Widowed, 3 children
Hometown: Omaha, NE
Education: University of Nebraska Lincoln, Bachelor of
Arts / Science
Columbia University, Master of Science
Revered investor taking it on the chin over Berkshire
Hathaway's General Re insurance unit; SEC threatening
civil fraud suit against General Re Chief Joseph
Brandon over questionable transaction with American
International Group. Also getting it for his board
seat at Coca-Cola, where his "independence"
might be compromised by Berkshire's ownership of Dairy
Queen, which buys lots of Coke products. Buffett:
"Do they want us to favor Pepsi?" At
Berkshire set in place two governance reforms: regular
meetings of directors without Buffett present;
whistleblower line for employees. Sitting on $43
billion in cash, hoped to make some big acquisitions
last year, "but I struck out." Instead,
invested in foreign currencies: $21 billion bet
against the dollar and in favor of various other
currencies. "In no way does our thinking about
currencies rest on doubts about America."
Newspaper delivery boy filed first 1040 at age 13;
claimed $35 deduction for bicycle. Studied under
Benjamin Graham at Columbia. Applied value-investing
principles to build Berkshire Hathaway. Portfolio
includes utilities (MidAmerican Energy Holdings),
insurance (Geico, General Re), apparel (Fruit of the
Loom), flight services (FlightSafety, NetJets). Also
chunks of American Express, Coca-Cola, Gillette, Wells
Fargo. Instructs managers to run a business as if it's
the only asset the manager's family will own over the
next 100 years. Prefers his investors to buy equities
only after careful analysis. "If they insist on
trying to time their participation in equities, they
should try to be fearful when others are greedy and
greedy only when others are fearful." Says he
underestimated the severity of certain stocks'
overvaluation during the tech bubble. "I talked
when I should have walked." No matter. Since
taking control of Berkshire 40 years ago, has
delivered compound annual return of 22%. "No
wonder we tap-dance to work."
By forbes.com
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