Wednesday, December 29, 2010

Warren Buffet Adored His Teachers All Time!

In 1920 Ben Graham had become a well known mentor in investment. He was highly experienced player in this field. It was around this time that Graham came up with the principle of "intrinsic" business value - a measure of a business's true worth that was completely and totally independent of the stock price. Using intrinsic value, investors could decide what a company was worth and make investment decisions accordingly. Graham’s ‘Intelligent investor’ has been all time favorite of Warren Buffet.
Through his ideals Ben Graham became a role model of Warren Buffet, who was just 21 year old. Warren Buffet stumbled upon reading that his mentor was the chairman of a small insurance company called GEICO. Warren just took a train to Washington DC.
When he went there, the doors were locked. Buffett knocked on the door until a person came to open it for him. He asked if anybody was there in the building. As luck would have it, there was a person! There was a person still working on the sixth floor.

 Warren went up to meet him and instantly began asking questions about the company and its business practices; a conversation went up to four hours. The man was Lorimer Davidson, the Financial Vice President. This experience stayed with Buffett for the rest of his life. He eventually acquired the entire GEICO Company. Warren Buffet was the only student to get A+ in Graham’s class. Somehow Warren and Ben Graham fell off on the issue of Wall Street. But still in the bottom of his heart Warren loved and adored his teacher.
Warren Buffet is a person of grit and wit.


bye till next post

By Geeta Rao
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Tuesday, December 28, 2010

Wonderful Warren Buffet – A Born Businessman!

You know readers, somehow I take great interest in writing about life stories of world famous corporate in the business field. Warren Buffet has been my all time favorite person to go ahead with. The business acumen, their determination and extraordinary courage to accept the challenges have made them path makers for the followers. I have decided to write few posts on Warren Buffet here. Hope you will read and enjoy my effort.  Warren Buffet was born on August 30, 1930.Howard was the name of his father.
Warren Buffet was born on August 30, 1930.Howard was the name of his father. The essence of business acumen made Warren stand apart in the crowd right from the beginning. There were many people who remembered his uncanny ability of pulling the business on. He had amazing interest in money and taking the business to next step.
Warren Buffet showed his skill at the age of six and took the world by surprise. He had purchased 6-coca colas for 25 cents and sold them making profit of 5 cents. Other children of his age were playing and Warren Buffet was involved in making money. He bought shares of $38 when he was 11.The these shares fell off, then again rebounded for $40. He then sold them. Within no time it went up to $200. Here Warren says he learnt a basic lesson of share market that is Patience! It proves to be a virtue in investing market.
Warren completed his schooling in 1947, not much interested in studies. At this juncture, he had$5000 in his bank account delivering the news papers. As every father dreams about his son, Warren’s father also had dreamt of sending him to a world famous business school Wharton Business School at the University of Pennsylvania.

 Warren complained that he knew more than his professors. This time his father suffered a defeat. That made Warren to rush home and become a graduate in just three years. Ironically Harvard rejected him as ‘too young.’ Then he applied to Columbia which changed his life for the best. The professors at this college influenced on Warren Buffet’s life hugely.

Bye…continued in the next post.
Geeta Rao.
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Wednesday, December 15, 2010

Karl Albrecht –Powerful Package Come in Small!

Karl Albrecht was born on February 20, 1920. Karl grew into a big businessman who founded the discount supermarket chain Aldi. He started this venture with his brother Theo Albrecht.  Karl Albrecht is named among the richest men in the world as his fortune is worth $23.5 billion according to Forbes. He is considered as the wealthiest German in 2010

These two brothers grew up very comfortably. Their father served as miner and as assistant baker. As usual their mother had a great role in their lives. She owned a small grocery shop at Schonnebeck. This very small grocery store got expanded and became as Aldi supermarkets by Karl and Theo Albrecht. For a short period of time both brothers served in different field. But in 1961, they took over their mother’s business, opening their first store with refined touch.

The two brothers thoughtfully divided to manage their stores. Clever Karl chose the most roaring and profitable souther section (Aldi Sud) and Theo managing the northern branches (Aldi Nord).Very little is known about his rest of life. His brother Theo got kidnapped in 1971. His personal life is also kept under the wraps. It is assumed that both brothers today live in Essen, Germany.

Karl had his own golf course built in 1976. He is well known as a die hard fan of golf. Karl is fond of growing orchids and old type writers. Karl withdrew from public eyes in 1994 became chairman of the board. Somehow today neither Karl nor Theo has any control over Aldi today. Aldi chains have spread across the world making good name and fame.

 Author -Geeta Rao
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