Feature

The Buffett Way Always Different!

By Upoma Dutta

THERE is hardly any business major who has not heard of the legendary investor Warren Buffett. By being at the helm of one of the world's largest holding companies Berkshire Hathaway Buffett has made billions of dollars in wealth over the last decades. For 30 consecutive years, he has been claiming a place in the Forbes magazine's 'rich list'. This year, the magazine ranked him as the third richest man in the world with an estimated net worth of $47.0 billion!

Although he has never found the time to pen down an autobiography, his life story and investment strategies have hardly remained a secret thanks to the media hype surrounding him. Every day, numerous blogs analyze the investment decisions made by Buffett. Bookstores are selling countless copies of books like 'The Warren Buffett Way'; even his daughter-in-law, Mary Buffett, could not resist the urge to co-author the book 'Buffettology'. Most importantly, Buffett's No. 1 investment rule 'Never lose money' guides many young investors on the way to making their first million.

Thus it is evident that Warren Buffett fondly called the 'Sage of Omaha' is no less than a celebrity himself. However, unlike most celebrities in his league, he is not interested in excessive display of wealth and power. From an early age, he has learned the importance of saving money. When he was only 11 years old, he started selling chewing gums and coke, and he does not recall spending the profits on stuffs that boys of his age used to buy. Instead, he used his money to buy three shares of Citi Service. And today, even though he is sufficiently wealthy to own a palace, he prefers living in a modest house that he bought in 1958 long before he was a millionaire! Compare this to fellow billionaires such as Lakshmi Niwas Mittal, who resides in a neo-Palladian mansion worth over £70 million.

However, despite his frugal lifestyle, nobody can accuse Buffett of being a miser. Over 45 years ago, he has founded the Buffett Foundation, one of the largest charitable organizations in the US. And in 2006, he revealed his intention to donate 85 per cent of his fortune to five foundations, including the Bill & Melinda Gates Foundation.

Surely the real Warren Buffett does not fit the typical image of an extravagant multibillionaire. Instead, he shows how people who are as great as he is, earn a lot of money but not always for themselves.

(The writer is a student of the Institute of Business Administration (IBA), the University of Dhaka.)