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WARREN BUFFET ORACLE OF OMAHA
WARREN BUFFET THE ORACLE OF OMAHA
BUSINESS WEEK (2008) 10/13 FELDMAN, 97-98
There have been numerous books on Warren Buffet, but this one according to BUSINESS WEEK is the most comprehensive and penetrating. It was also done with Buffet’s cooperation, the book runs over 800 pages so it also covers much of what the other books have stated.
As a disclaimer, I have 2 spoofs about Buffet. They are in the archives. In them, it states how I knew Buffet. Well I don’t but there are enough similarities in that we both went to the same grade school and frequented the same steak house and I did shop at his parent’s grocery store, that I feel I did know him. Further, my best friend lived two houses from Warren and my brother-in-law would walk to school with one of his sons.
I like Mr. Buffet so this should tell you that this is a biased review. It is disheartening when American capitalists make big annual salaries by screwing their workers and retire with a ton of money for running a business into the toilet.
Buffet lives very modestly and is the richest or one of the richest men in the United States of America and the world. The book is THE SNOWBALL: WARREN BUFFET AND THE BUSINESS OF LIFE. It is by Alice Schroeder a business writer.
Buffet was humbled in life by his mother’s rages. A sensitive introspective individual he lives a very simple life and has recently done a lot to boost the American economy. His father was our congressman in our district who was very ethical but very inflexible. He was succeeded by Glenn Cunningham who attended my father’s funeral.
The Buffet grocery store was on Underwood in a shopping district that was surrounded by big old gold coast homes. The store had rough wood on the floor and blocks bins for food and related. Importantly, they delivered groceries to some of the richest people in Omaha in the Fairacres, Dundee, and Country Club area. A customer might call into to see if the order was on the back dock ready for delivery.
Part of his life was spent in Omaha and the rest in Washington DC and New York City. He went to Colombia and was schooled by one of the best investors who taught there.
His beginning is that he knew what he wanted. He thought that he could be successful in business and focused entirely on this area. He knew but did not dwell on anything else. By 1965 he created Berkshire-Hathaway investments. He stayed in Omaha his home. Few knew him when he was investing and making money. His strategy is simple. You buy a good business when times are bad. He has secret criteria of what makes a good business and then holds the stock and continually monitors it.
Once a year, he describes the economy to his investors. My good friend got a pass into it and was amazed. Most of the others have made incredible amounts of money under Buffet and the investors must have at least one share to get in. However a share is extremely expensive so Omaha is the center of the world a few days in the spring of each year.
He has been telling his investors that the economy that has crashed as I write this was very risky, highly leveraged, and poorly regulated. His investments are in product or services. He must know the product and feel comfortable with it. He hasn’t changed in some 60 years. The rub is that others perhaps start that way, but get greedy and or high on money and they begin to believe that a business cycle does not exist. Or they become corrupt. So Buffet is revered nationally because he is the best in making money and not showing it. Further, he gives a lot away. Local Omahan’s like him, but the local newspaper does not. Buffet is a Democrat in a Republican town. My last visit to the neighborhood before the election had the old gold coast filled with Obama signs.
Presidential candidate Barrack Obama could not believe Buffet’s office when he went to visit him. Most billionaire’s offices are monuments to themselves. This is not the case with Warren. He finally traded in his own old Lincoln town car for a new Cadillac which by now is a couple of years old. Therefore no Limo and or driver are necessary. That’s Buffet.
WELCH 78/ CAR DEALERS
There is an upside to the economic downturn. Both GM and Ford are shaky and that can stimulate them to drop dealerships. Nearly 3800 need to close by the end of 2009
________52 THE TOP TEN IN SPORTS
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