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Transcript of Warren buffett
Hes just like you and me, except for the 31bn fortune
PROFILE: Warren Buffett
Quotations from Warren Buffett It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you ll do things differently.Price is what you pay. Value is what you get.We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.Only when the tide goes out do you discover whos been swimming naked.The first rule is not to lose. The second rule is not to forget the first rule.
Forbes Magazines Rich List of 2010 Forbes Magazines Rich List is an annual celebration of the super-wealthy. Microsoft Chairman Bill Gates is always at or very near the top, and this years list sees him only making second place behind Carlos Slim. Other tech personalities also place highly in the list.Bill Gates is worth an estimated $53 billion. Which is a lot of money. However, Carlos Slim, the 70-year-old Mexican telecommunications mogul is worth more, with an estimated fortune of $53.5 billion. While half a billion dollars is a fortune to the vast majority of us, its small beer to these guys.Mogul [mugl] has great power and influence in a particular industry or activity
Forbes Magazines Rich List of 2010 Slim tops the Forbes list for the first time, knocking Gates off in the process. But Gates should now be used to playing second fiddle to guys with more money than him as Warren Buffett stole the top spot off him in 2008 before he retook it last year.
When F Scott Fitzgerald observed that the very rich are different from you and me, the novelist was clearly not thinking of people like Warren Buffett. Proclaimed the worlds richest man last week, the American investment strategist eats at his local grill and drives to work from the modest home that he bought in unfashionable Omaha, Nebraska, in 1958, which is today valued at about 350,000. Grill n a place where you can buy and eat grilled food e.g beans Bar and Grill
Modest adj not very big or expensive less than you would expect His modest ambitions
Such is the frugality of the 77-year-old sage of Omaha, whose wealth increased by 5 billion last year to 31 billion, that when he married in 2006 he bought a discount ring from his own jewellery company. He has vowed to pass on only a small chunk of his fortune to his children, Susie, Howard and Peter. He wants them to have enough to do anything but not to do nothing.
Frugal ,[(+of)] She is a frugal housekeeper. ,We had a frugal lunch. Vow ()[+to-v][+(that)] I vowed never to reveal the secret.
His advice has enriched more investors than anyone else in history, but Buffett pays himself a mere 50,000 a year and prefers such ordinary fare as steaks and hamburgers, washed down with Cherry Coke. Not for him the bright lights of New York, even though he owns a private jet, his one extravagance: I have everything I need and am very comfortable right here at home in Omaha. I feel sorry for people who are consumed by possessions. Extravagance ;;[C] Food is a necessity, but wine is an extravagance. , luxury Consumed with He was consumed with guilt after the accident
Known for his wry homilies, Buffett has bet his house in jest against that of his friend and bridge partner Bill Gates, the Microsoft co-founder now relegated from first to third place in the zillionaire stakes, according to Forbes magazine. They used to meet for games at a Holiday Inn near Buffetts home, but of late they play online - Buffetts only concession to newfangled technology - under the user names T-bone (Buffett) and Challenger X. 1. Homily n advice how to behave 2. Jest in jest not serious e.g I only said it in jest. Never jest about serious matters.
Buffetts ranking may seem puzzling, given that in 2006 he announced he was donating his fortune to charity, with about 15 billion going to the Bill and Melinda Gates Foundation, dedicated to combating Aids, tuberculosis and malaria. The donations are in instalments - the latest for 880m - but Buffett just gets richer. 1. ..., Drastic measures were taken to combat inflation.
This act of philanthropy was an indirect consequence of Buffetts unorthodox role as a husband and lover. In 1952 he married Susan Thompson, a former cabaret singer who, after raising their children, announced in 1977 that she was leaving Omaha to pursue her singing career in San Francisco. They remained married and on good terms, holidaying together and helping charitable groups. 1. Unorthodox different from what is usual or accepted by most people A tennis player with an unorthodox style 2.Cabaret )[U][C] The city has two nightclubs with cabaret.
Buffett had always expected that Susan would inherit his wealth and pass it to charitable causes, he explained later: When we got married, I told Susie I was going to be rich . . . [not] because of any special virtues of mine, but simply because I was wired at birth to allocate capital. Susie was less than thrilled by this prospect: But we were totally in sync about what to do with it - and that was to give it back to society. 1.Inherit v to receive money property from sbe.g. she inherited the land from her grandfather.
In 1978 Susan introduced her husband to Astrid Menks, a Latvian working as a waitress in a restaurant, who soon moved in with him. Buffett sent out Christmas cards signed Warren, Susie and Astrid. Astrid Menks
Two years after Susan died from a stroke in 2004, Buffett married Astrid, then 60. Astrid loves him and takes care of him, his daughter Susie said. If Warren didnt have a cent shed still be with him. Just before their wedding, he revealed his plan to release his ever-growing riches to charitable causes for decades to come.
Buffett likes to make wealth-generation sound simple. He once summed it up thus: Rule No 1: never lose money. Rule No 2: never forget rule No 1. His prescience is world-renowned: he refused to buy stocks in the booming 1960s, only to strike gold in the plummeting 1970s. He walked away from the dotcom boom in the 1990s, sticking with boring blue-chips such as Gillette, Coca-Cola and American Express. He always came up smelling of greenbacks. Plummet n; v suddenly and quickly go down house prices have plummeted
He is one of the most respected voices in financial America, embodying Midwest virtues of probity, modesty and common sense, so his recent warning that America was in recession stirred panic. He was born in 1930 in a house in Omaha on the banks of the Missouri River, the son of Leila and Howard, a Republican stockbroker elected to Congress on a platform described as to the right of God. His grandfather ran the familys grocery store dating from 1869, where Buffetts fortune began.
My grandfather would sell me Wrigleys chewing gum and I would go door to door around my neighbourhood selling it, he recalled. He also sold me a six-pack of Coca-Cola for a quarter [25c] and I would sell it for a nickel [5c] each, so I made a small profit. He supplemented his earnings by selling lost golf balls. When the family moved to Washington, the 12-year-old Warren took on five paper rounds, using his access to customers to sell them magazine subscriptions. My subscription to the magazine will soon expire, I will renew it. ,
By the following year he was making 80 a month, an incredible sum in the 1940s. Through shrewd investment, at the age of 14 he saved the 400 needed to buy 40 acres of local farmland, which he rented out. His first dabble in the stock market earned him a $2 profit before the shares shot up, teaching him that patience pays off. Dabble v be involved in sth tryJames dabbles in politics.
After a first degree at the University of Nebraska Lincoln, he went to Columbia Business School in New York, where he fell under the spell of Benjamin Graham, an investment guru who awarded Buffett the only A+ grade he ever bestowed. Buffett worked for his mentor after graduation but outgrew him, according to Roger Lowenstein, Buffetts biographer: Graham would amaze the staff with his ability to scan a page with columns of figures and pick out an error. But Buffett was faster at it. Scan to glance at; to browse to skim over; He scanned the headlines of the evening paper.
His strategy was to search for cigar butt companies, no longer of interest to the market and thus undervalued, but which still had a few puffs left in them. In 1962 he spotted a run-down Massachusetts textilefirm, Berkshire Hathaway, which he bought and transformed into an insurance company. His empire now extends to sweet shops and Fruit of the Loom clothing. He has shares in The Washington Post, Tesco and a controlling stake in CE Electric, which supplies energy to 3.7m English homes.
He denounced the outright crookedness of Enron, the collapsed American conglomerate, and the dubious methods used by corporations to calculate pension charges and stock option costs: CEOs will be respected and believed . . . only when they deserve to be. They should quit talking about some bad apples and reflect instead on their own behaviour.
This rigour extends to his family dealings, notably his past stinginess with his children. On one occasion his daughter Susie needed $20 to get her car out of an airport car park, but Buffett made her write a cheque to him first. He doesnt spare himself either: Only my clothes are more expensive now, but they look cheap when I put them o