Assessed blog 7 World’s greatest money maker-Warren Buffett
In this week l watched a video about Warren Buffett,the world’s greatest,also the most welcomed money maker.Actually ,l choose to watch is because he is my favorite investor.There are many rich man in this world,they all have their unique rule and method to operate their business,and Warren Buffet is no exception.But how to be a rich man be respected by everyone is what makes Buffet unique.So,in this blog l want to find out how Buffet step into success and has such influence all over the world.
Warren Buffett’s name is practically synonymous with his biggest success: Berkshire Hathaway. Warren became an integral part of Berkshire Hathaway in the early 1960s and helped the company expand into one of the largest conglomerates in the world. In 1956, his path to success began to accelerate when he moved back to Nebraska with his family.And in 1982,he stake in Coca cola for 1.2billion dollars,about 11 dollar per share,and hold it for a long while,in 1985,the per share has increased to 51.5 dollar per share.However,Business for Buffett hasn’t always been rosy though. In 1975, Buffett and his business partner, Charlie Munger, were investigated by the SEC for fraud. The two maintained that they had done nothing wrong and that the purchase of Wesco Financial Corporation only looked suspicious because of their complex system of businesses.Further trouble came with a large investment in Salomon Inc. In 1991 news broke of a trader breaking Treasury bidding rules on multiple occasions, and only through intense negotiations with the Treasury did Buffett manage to stave off a ban on buying Treasury notes and subsequent bankruptcy for the firm.Modesty and quiet living meant that it took Forbes some time to notice Warren and add him to the list of richest Americans, but when they finally did in 1985 he was already a billionaire. Early investors in Berkshire Hathaway could have bought in as low as 275 a share and by 2014 the stock price had reached $200,000, and was trading around $220,000 earlier this year.
Unnecessary to diversify your investment

Don’t go into debt
The other point is what he mentioned do not go into debt,l remember clearly that his daughter want to borrow money from him to open a restaurant,as a billionaire,the money to him is just a simple thing,but he refused,and the reason is he hate debt.It is a little surprised to me,but maybe is his resistance to his rules can make today’s success.However,to be frank, l think not go into debt is just a warning to pay attention to your debt at every moment.Nowadays,there is no firm’s can get away from debt,they need debt to expand their business,moreover,the benefit of the tax offset can create more value to the shareholders and instruct the company close to the optimal capital structure.So,100% without tax is non-exist,what firm should do is learn to constraint their ambitions,try to adjust a more stable capital structure.
The other point is what he mentioned do not go into debt,l remember clearly that his daughter want to borrow money from him to open a restaurant,as a billionaire,the money to him is just a simple thing,but he refused,and the reason is he hate debt.It is a little surprised to me,but maybe is his resistance to his rules can make today’s success.However,to be frank, l think not go into debt is just a warning to pay attention to your debt at every moment.Nowadays,there is no firm’s can get away from debt,they need debt to expand their business,moreover,the benefit of the tax offset can create more value to the shareholders and instruct the company close to the optimal capital structure.So,100% without tax is non-exist,what firm should do is learn to constraint their ambitions,try to adjust a more stable capital structure.
Act like a child,think like a giant

Charity work
Except for the simple living standard,Buffet also keen on charity work.A shocking news is that he has pledged to give away 99% of his wealth within ten years to support the charity work.Buffett donated a total of 19,608,620 class B shares of Berkshire Hathaway stock to five separate charities. The big winner is the Bill and Melinda Gates Foundation, which received 14,968,423 shares worth an approximate $2.2 billion, As for the rest of the beneficiaries, Buffett decided to keep it in the family, so to speak. He gave 1,496,842 shares ($215 million) to the Susan Thompson Buffett Foundation, named for his late wife, which focuses on family planning programs, and 1,047,785 shares ($150 million) each to the Howard G. Buffett Foundation, The Sherwood Foundation and the NoVo Foundation, which are run by his children Howard, Susan and Peter Buffett, respectively.He even not leave any money for his child which he believe they need to earn their wealth by their own hands.
To sum up,l really want to become a man like Warren Buffett,not because his wealth.But his attitude towards life,and his insistence on his principles.