Buffett announces in June that he will give away more than 80%, or about $37 billion, of his $44 billion fortune to five foundations in annual gifts of stock, starting July 2006. The largest contribution will go to the Bill and Melinda Gates Foundation.
Bill Gates is elected as a director for Berkshire Hathaway.
Buffett enters a deal where $11 billion worth of forward contracts is delivered in US dollars against other currencies. By April 2006, his total gain on these contracts is over $2 billion.
Buffett is named the top money manager of the 20th century in a survey by the Carson Group, ahead of Peter Lynch and John Templeton.
After investing first time in GEICO, Buffett continually invested in GEICO until 1996, when Berkshire acquires the remaining stake in GEICO to become 100% owned subsidiary.
Robert G. Hagstorm
"The Warren Buffett Way" by Robert G. Hagstrom Jr. is published and becomes a bestseller.
Berkshire acquires Central States Indemnity Company (Insurance) of Omaha.
Buffett began buying The Coca-Cola Company stock, eventually purchasing up to 7% of the company for $1.02 billion. It would turn out to be one of Berkshire's most lucrative investments, and one which it still holds.
Berkshire buys $139 million of Washington Public Power Supply System Bonds, invests in Exxon (Oil) and Northwest Industries (Diversified).
Berkshire portfolio is worth $1.3 billion.
Warren’s personal net worth has ballooned to $620 million and he makes the Forbes millionaire list for the first time.
Nebraska Furniture Mart
Berkshire Hathaway purchases Nebraska Furniture Mart (Furniture) for $60 million.
Berkshire buys stock in RJ Reynolds (Tobacco), ALCOA (Metals and Mining), Pinkerton (Professional Services), Cleveland-Cliffs Iron (Metals and Mining), National Detroit (Banking), Times Mirror (Publishing), National Student Marketing (Financial Services).
Berkshire starts to buy shares in General Foods (Foods), Handy & Harman (Metals and Mining), Affiliated Publications (Publishing), Media General (Publishing), FW Woolworth (Retail), Amerada Hess (Oil), Precision Steel Warehouse (Materials and Construction).
Berkshire invests in SAFECO (Insurance), ABC Broadcasting (TV Network).
Berkshire invests in the Buffalo Evening News (Publishing) for $32.5 million. He also invests in Interpublic (Advertising) and Ogilvy & Mather (Advertising), Kaiser Industries (Metals and Mining), and Knight-Rider (Publishing).
Berkshire invests $4 million in GEICO (Insurance) when its stock price was just above $2.
Berkshire starts buying stocks in the Washington Post company (Publishing). Buffett becomes close friends with Katharine Graham who controlled the company and its flagship newspaper and becomes a member of the board of directors.
In 1969, following his most successful year, Buffett liquidated the partnership and transferred their assets to his partners.
Berkshire acquires Sun Newspapers (Publishing), Rockford Bank (Banking), Illinois National Bank (Banking) and Blacker Printing Company (Publishing).
Buffett Partnership owned 59.5% of Berkshire Hathaway. Berkshire Hathaway pays a 10 cent dividend. This is the first and only dividend it has paid ever.
Buffett invested $4 million in Walt Disney after a meeting with Walt Disney himself which is almost 5% of the company.
Buffett solds Dempster for a $2.3 million gain, 3x times the invested amount.
Buffett goes to New York to meet his old acquaintances to include more partners and raise capital. He collects a few hundreds of thousand dollars. Buffett partnerships is worth $7.2 million. Buffett then merges all partnerships into one and rename it as Buffett Partnerships Ltd.
Buffett came to know that Berkshire Hathaway selling for $8 a share and starts buying aggressively.
Dempster – a windmill manufacturing company
Buffett made his first million dollar investment in Dempster – a windmill manufacturing company. At that time Buffett was running seven partnerships; Buffett Associates, Buffett Fund, Dacee, Emdee, Glenoff, Mo-Buff, and Underwood. The partnerships were worth a few million.
Buffett returned to Omaha and on May 1, created Buffett Associates Ltd. Seven family members and friends invest a total of $105k. Buffett invested only $100k.
Buffett accepted a job at Benjamin Graham's partnership. His starting salary was $12,000 a year (about $114,000 today). There he worked closely with Walter Schloss.
23-03-1954 - PresentView
Columbia Business School
Buffett enrolled at Columbia Business School of Columbia University. He earned a Master of Science in Economics from Columbia in 1951.
University of Nebraska
University of Nebraska where at 19, he graduated with a Bachelor of Science in Business Administration.
Wharton School of the University of Pennsylvania
Buffet entered the Wharton School of the University of Pennsylvania in 1947.
Buffett makes $175 a month selling Washington Post newspapers and saves $1200 to buy a 40 acre farmland in Omaha, Nebraska.
Buffett buys his first stock – 6 shares of Cities Service (now known as CITGO – an Oil company) at $38 per share. He bought 3 for himself and 3 for his sister Doris. That is all the money he had at that time. The stock price fell to $27 but soon went to $40. He sold the stock at $40, but, the stock shot up to $202 in the next few years. Thus, he gain this experience as an early lesson in patience in investing.