Much of this article is part of the legend of the Oracle of Omaha but it provides a nice summary. The full article is longer and can be read at the source:
Warren Buffett's $50 Billion Decision - Forbes
Warren Buffett's $50 Billion Decision - Forbes
By Warren Buffett
Benjamin Graham had been my idol ever since I read his book The Intelligent Investor.
I had wanted to go to Columbia Business School because he was a professor there, and after I got out of Columbia, returned to Omaha, and started selling securities, I didn’t forget about him. Between 1951 and 1954, I made a pest of myself, sending him frequent securities ideas. Then I got a letter back: “Next time you’re in New York, come and see me.”
So there I went, and he offered me a job at Graham-Newman Corp., which he ran with Jerry Newman.
I told my wife, “Compound interest guarantees I’m going to get rich.”
In Omaha, I rented a house. I told my wife, “I’d be glad to buy a house, but that’s like a carpenter selling his toolkit.” I didn’t want to use up my capital.
I had no plans to start a partnership, or even have a job. I had no worries as long as I could operate on my own. I certainly did not want to sell securities to other people again. But by pure accident, seven people, including a few of my relatives, said to me, “You used to sell stocks, and we want you to tell us what to do with our money.” I replied, “I’m not going to do that again, but I’ll form a partnership like Ben and Jerry had, and if you want to join me, you can.” My father-in-law, my college roommate, his mother, my aunt Alice, my sister, my brother-in-law, and my lawyer all signed on. I also had my hundred dollars.
That was the beginning—totally accidental.
“But these ground rules are the philosophy. If you are in tune with me, then let’s go. If you aren’t, I understand.
We made everything clear, and they gave me their checks.
Although I had no idea, age 25 was a turning point. I was changing my life, setting up something that would turn into a fairly good-size partnership called Berkshire Hathaway.
I wasn’t scared. I was doing something I liked, and I’m still doing it.
Benjamin Graham had been my idol ever since I read his book The Intelligent Investor.
I had wanted to go to Columbia Business School because he was a professor there, and after I got out of Columbia, returned to Omaha, and started selling securities, I didn’t forget about him. Between 1951 and 1954, I made a pest of myself, sending him frequent securities ideas. Then I got a letter back: “Next time you’re in New York, come and see me.”
So there I went, and he offered me a job at Graham-Newman Corp., which he ran with Jerry Newman.
I told my wife, “Compound interest guarantees I’m going to get rich.”
In Omaha, I rented a house. I told my wife, “I’d be glad to buy a house, but that’s like a carpenter selling his toolkit.” I didn’t want to use up my capital.
I had no plans to start a partnership, or even have a job. I had no worries as long as I could operate on my own. I certainly did not want to sell securities to other people again. But by pure accident, seven people, including a few of my relatives, said to me, “You used to sell stocks, and we want you to tell us what to do with our money.” I replied, “I’m not going to do that again, but I’ll form a partnership like Ben and Jerry had, and if you want to join me, you can.” My father-in-law, my college roommate, his mother, my aunt Alice, my sister, my brother-in-law, and my lawyer all signed on. I also had my hundred dollars.
That was the beginning—totally accidental.
“But these ground rules are the philosophy. If you are in tune with me, then let’s go. If you aren’t, I understand.
We made everything clear, and they gave me their checks.
Although I had no idea, age 25 was a turning point. I was changing my life, setting up something that would turn into a fairly good-size partnership called Berkshire Hathaway.
I wasn’t scared. I was doing something I liked, and I’m still doing it.
