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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