Buffett’s Time Line

Warren Buffett is one of the best investor and businessman on earth. Here is a time line of his life (until 1989). Do share what lessons you gleam from it?

Buffett Time Line

  • August 30, 1930: Warren Edward Buffett is born to his parents, Howard and Leila Buffett, in Nebraska.
  • 1941: At eleven years old, Warren buys his first stock. He purchases 6 shares of Cities Service preferred stock [3 shares for himself, 3 for his sister, Doris], at a cost of $38 per share. The company falls to $27 but shortly climbs back to $40. Warren & Doris sell their stock. Almost immediately, it shoots up to over $200 per share.
  • 1943: Warren declares to a friend of the family that he will be a millionaire by the time he turns thirty, or “[I’ll] jump off the tallest building in Omaha.”
  • 1945: Warren is making $175 monthly delivering Washington Post newspapers. At fourteen years old, he invests $1,200 of his savings into 40 acres of farmland.
  • 1947: In his senior year of high school, Warren and a friend purchase a used pinball machine at a cost of $25. Buffett begins to think about the potential profit, and places it in a nearby Barber Shop. Within months, he owns three machines in three different locations. The business is sold later in the year for $1,200 to a War Veteran.
  • 1947: Warren has earned over $5,000 delivering newspapers. His father presses him to attend college, a suggestion Warren does not take well. Nevertheless, that year, he enrolls as a freshman at the Wharton School of Finance and Commerce in Pennsylvania. Buffett hates it, complaining he knows more than the teachers.
  • 1949: Classmates return to find that Warren is no longer enrolled at Wharton. He has transferred to the University of Nebraska.
  • 1949: Warren is enrolled in classes, but has already begun his life. He is offered a job at J.C. Penny’s after college, but turns it down. He graduates from college in only three years by taking his last three credits over the summer. His savings have reached $9,800.
  • 1950: Buffett applies for admission to Harvard Business School and is turned down. He eventually enrolls at Columbia after learning that Ben Graham and David Dodd, two well-known security analysts, are professors.
  • 1951: Warren discovers Graham is on the Board of GEICO insurance. He takes a train to Washington, D.C., and knocks on the door of its headquarters until a janitor lets him in. After asking if anyone is working, he find a man on the sixth floor, who ends up being high up in the company. They talk for hours while Warren questions him on the business and insurance in general. [Buffett now owns GEICO entirely].
  • 1951: Buffett graduates and wants to go to work on Wall Street. Both his father [Howard] and mentor [Graham] urge him not to. Warren offers to work for Ben Graham for free but Graham refuses.
  • 1951: Warren returns home and begins dating Susan Thompson.
  • 1951: Buffett purchases a Texaco station as a side investment. It doesn’t work out as well as he hopes. Meanwhile, he is working as a stockbroker
  • 1951: Buffett takes a Dale Carnegie public speaking course. Using what he learnt, he began to teach a night class at the University of Nebraska, “Investment Principles”. The students were twice his age [he was only 21 at the time].
  • April, 1952: Warren and Susie get married. They rent an apartment for $65 a month, and have their first child, also Susie.
  • 1954: Ben Graham calls Warren and offers him a job at his partnership. Buffett’s starting salary is $12,000 a year.
  • 1956: Graham retires and folds up his partnership. Since leaving college six years earlier, Warren’s personal savings have grown from $9,800 to over $140,000.
  • 1956: The Buffett family returns home to Omaha. On May 1, Warren created Buffett Associates, Ltd. Seven family members and friends put in a total of $105,000. Buffett himself invested only $100. He was now running his own partnership, and would never again work for anyone else. Over the course of the year, he opened two additional partnership, eventually bringing the number under his management to three. Years later, they would all be consolidated into one.
  • 1957: Buffett adds two more partnerships to his collection. He is now managing five investment partnerships from his home.
  • 1957: With Susan about to have her third child, Warren purchases a five-bedroom, stucco house on Farnam street. It cost $31,500.
  • 1958: The third year of the partnership completed, Buffett doubles the partner’s money.
  • 1959: Warren is introduced to Charlie Munger, who will eventually become the Vice Chairman of Berkshire Hathaway, and an integral part of the company’s success. The two get along immediately.
  • 1960: Warren asks one of his partners, a doctor, to find ten other doctors who will be willing to invest $10,000 each into his partnership. Eventually, eleven doctors agreed to invest.
  • 1961: With the partnerships now worth millions, Buffett made his first $1 million dollar investment in a windmill manufacturing company.
  • 1962: Buffett returns to New York with Susie for a few weeks to raise capital from his old acquaintances. During the trip, he picks up a few partners and several hundred thousand dollars.
  • 1962: The Buffett Partnership, which had begun with $105,000, was now worth $7.2 million. Warren and Susie personally own over $1 million of the assets. Buffett merges all of the partnerships into one entity known simply as Buffett Partnerships, Ltd. The operations are moved to Kiewit plaza, a functional but less-than-grand office, where they remain to this day. The minimum investment is raised from $25,000 to $100,000.
  • 1962: Buffett consults Munger on Dempster, the windmill manufacturing company. Munger recommends Harry Bottle to Warren; a move that would turn out to be very profitable. Bottle cut costs, laid off workers, and caused the company to generate cash.
  • 1962: Warren discovers a textile manufacturing firm, Berkshire Hathaway, that is selling for under $8 per share. He begins to buy the stock.
  • 1963: Buffett sells Dempster for 3x the amount he invested [The almost worthless company had built a portfolio of stocks worth over $2 million alone during the time of Buffett’s investment].
  • 1963: The Buffett partnerships becomes the largest shareholder of Berkshire Hathaway.
  • 1964: Due to a fraud scandal, American Express shares fall to $35. While the world is selling the stock, Buffett begins to buy shares en masse.
  • 1965: Warren’s father, Howard, dies.
  • 1965: Buffett begins to purchase shares in Walt Disney Co. after meeting with Walt personally. Warren invested $4 million [which was equal to around 5% of the company].
  • 1965: The American Express shares which were purchased shortly before are selling for more than double the price Warren paid for the them.
  • 1965: Buffett arranges a business coup – taking control of Berkshire Hathaway at the board meeting and naming a new President, Ken Chace, to run the company.
  • 1966: Warren’s personal investment in the partnership reaches $6,849,936.
  • 1967: Berkshire pays out its first and only dividend of 10 cents.
  • 1967: In October, Warren writes to his partners and tells them he finds no bargains in the roaring stock market of the ’60s. His partnership is now worth $65 million.
  • 1967: Buffett is worth, personally, more than $10 million. He briefly considers leaving investing and pursuing other interests.
  • 1967: American Express hits over $180 per share, making the partnership $20 million in profit on a $13 million investment.
  • 1967: Berkshire Hathaway acquires National Indemnity insurance at Buffett’s direction. It pays $8.6 million.
  • 1968: The Buffett Partnership earns more than $40 million, bringing the total value to $104 million.
  • 1969: Following his most successful year, Buffett closes the partnership and liquidates its assets to his partners. Among the assets paid out are shares of Berkshire Hathaway. Warren’s personal stake now stands at $25 million. He is only 39 years old.
  • 1970: The Buffett Partnership is now completely dissolved and divested of its assets. Warren now owns 29% of the stock outstanding in Berkshire Hathaway. He names himself chairman and begins writing the annual letter to shareholders.
  • 1970: Berkshire makes $45,000 from textile operations, and $4.7 million in insurance, banking, and investments. Warren’s side investments are making more than the actual company itself.
  • 1971: Warren [at his wife’s request], purchases a $150,000 summer home at Laguna Beach.
  • 1973: Stock prices begin to drop; Warren is euphoric. At his direction, Berkshire issues notes at 8%.
  • 1973: Berkshire begins to acquire stock in the Washington Post Company.
  • 1974: Due to falling stock prices, the value of Berkshire’s stock portfolio began to fall. Warren’s personal wealth was cut by over 50%.
  • 1974: The SEC opens a formal investigation into Warren Buffett and one of Berkshire’s mergers. Nothing ever comes of it.
  • 1977: Berkshire indirectly purchases the Buffalo Evening News for $32.5 million. He would later be brought up on antitrust charges by a competing paper.
  • 1977: Susie leaves Warren, although not officially divorcing him. Warren is crushed.
  • 1978: Susie introduces Warren to Astrid, who eventually moves in with him.
  • 1979: Berkshire trades at $290 per share. Warren’s personal fortune is approximately $140 million, but he was living solely on a salary of $50,000 per year.
  • 1979: Berkshire begins to acquire stock in ABC.
  • 1981: Munger and Buffett create the Berkshire Charitable Contribution plan, allowing each shareholder to donate some of the company’s profits to his or her personal charities.
  • 1983: Berkshire ends the year with $1.3 billion in its corporate stock portfolio.
  • 1983: Berkshire begins the year at $775 per share, and ends at $1,310. Warren’s personal net worth is $620 million. He makes the Forbes list for the first time.
  • 1983: Buffett purchases Nebraska Furniture Mart for $60 million. It turns out to be one of his best investments yet.
  • 1985: Buffett finally shuts down the Berkshire textile mills after years of sustaining it. He refuses to allow it to drain capital from shareholders.
  • 1985: Warren helps orchestrate the merger between ABC and Cap Cities. He is forced to leave the Board of the Washington Post [Federal legislation prohibited him sitting on the Boards of both Capital Cities and Kay Graham’s Washington Post.
  • 1985: Buffett purchases Scott & Fetzer for Berkshire’s collection of businesses. It costs around $315 million, and boasts such products as Kirby vacuums and the World Book Encyclopedia.
  • 1986: Berkshire breaks $3,000 per share.
  • 1987: In the immediate crash and aftermath of October, Berkshire loses 25% of its value, dropping from $4,230 per share to around $3,170. The day of the crash, Buffett loses $342 million personally.
  • 1988: Buffett begins buying stock in Coca-Cola, eventually purchasing up to 7 percent of the company for $1.02 billion. It will turn out to be one of Berkshire’s most lucrative investments.
  • 1989: Berkshire rises from $4,800 per share to over $8,000. Warren now has a personal fortune of $3.8 billion. He spent $9.7 million of Berkshire’s funds on a business jet in 1989, he jokingly named it “The Indefensible” because of his past criticisms of such purchases by other CEOs. Acquired Borsheim’s, jewelry retailer from Friedman Family.
  • 1990: (60 years old.  Scandals involving Greenberg and Gutfreund appear.Buffett buys 10% of Wells Fargo (WFC) bank. The reason being that Carl Reichardt, the chairman of the bank who was famous for slashing costs , had once sold his jet to cut costs and Buffett appreciated this gesture.
  • 1991: (61 years old) Buffett served as CEO of Solomon Brothers following firm’s treasury bond trading scandal.
  • 1992: (62 years old) Buffett continued serving as interim Chairman of Solomon Brothers following firm’s treasury bond trading scandal.
  • 1993: (63 years old) Buffett purchased the Dexter Shoe Co, one of his worst investments.
  • 1994: (64 years old) The Bestseller “The Warren Buffett Way” by Robert G. Hagstrom Jr. is published.
  • 1995: (65 years old). Acquired Helzberg’s Diamond Shops. Acquired R.C. Willey Home Furnishings.
  • 1996: (66 years old). Fully acquired GEICO.
  • 1997: (67 years old). Acquired Star Furniture Co., furniture retailer and International Dairy Queen, Inc. Makes investment in Silver (less than 2 % of investment portfolio). Almost loses shirt in US Airways investment.
  • 1998: (68 years old). Acquires General Re, reinsurer. Acquires Executive Jet, Inc., the world’s leading provider of fractional ownership programs for general aviation aircraft. Executive Jet currently operates its NetJets® fractional ownership programs in the United States and Europe.
  • 1999: (69 years old) Acquires Jordan’s Furniture Company, the Massachusetts based furniture powerhouse. Acquires part of MidAmerican Energy Holdings Company, utility company.
  • 2000: (70 years old). Buffett is named the top money manager of the 20th century in a survey by the Carson Group, ahead of Peter Lynch and John Templeton. Wesco Financial Corporation, publicly traded, 80.1% owned subsidiary of Berkshire Hathaway Inc. acquires CORT, the leading national provider of rental furniture, accessories and related services in the growing “rent-to-rent” furniture rental industry. Acquires Ben Bridge Jeweler, Justin Industries includes Acme Building Brands – Acme Brick Company. Shaw Industries, Inc., the world’s largest manufacturer of tufted broadloom carpet, Benjamin Moore & Co. Benjamin Moore, a leading manufacturer and retailer of premium paints, stains and industrial coatings, was founded in 1883. Acquires Johns Manville, a leading manufacturer and marketer of premium-quality building products.2001: (71 years old)

    • Acquired Johns Manville Corp, a leading manufacturer and marketer of premium-quality building products.
    • Acquired MiTek, headquartered in Chesterfield, Missouri, the world’s leading provider of steel connector products, design engineering software and ancillary services for the global building components market.
    • Acquired XTRA Corporation, which leases, primarily on an operating basis, over-the-road trailers, marine containers, and intermodal equipment, including intermodal trailers, chassis and domestic containers.
    • Acquired Fruit of the Loom, Inc., apparel manufacturer.
    • Acquired Albecca, which designs, manufactures, and distributes a complete line of high-quality, branded custom picture framing products.

    2002: (72 years old)

    • Buffett entered in $11 billion worth of forward contracts to deliver US dollars against other currencies.
    • By April 2006, his total gain on these contracts was over $2 billion.
    • Berkshire Hathaway acquires Garan, a leading manufacturer of children’s, women’s, and men’s apparel bearing the private labels of its customers as well as various of its own trademarks, including GARANIMALS.
    • Berkshire Hathaway acquires CTB, a leading designer, manufacturer and marketer of equipment and systems for the poultry, hog, egg production and grain industries.
    • Berkshire Hathaway acquires The Pampered Chef from its founder and Chairman, Doris K. Christopher, and her family. The Pampered Chef is the largest branded kitchenware company and the largest direct seller of housewares in the U.S., with more than 67,000 “Kitchen Consultant” sales representatives.

    2003: (73 years old)

    • EBay auctions of lunch with Buffett for $250,100.
    • Berkshire Hathaway acquires McLane, based in Temple, Texas, one of the nation’s largest wholesale distributors of groceries and nonfood items to convenience stores, drug stores, wholesale clubs, mass merchandisers, quick service restaurants, theaters and others.
    • Berkshire Hathaway acquires Clayton Homes, Inc., a manufactured housing company.
    • Berkshire Hathaway acquires Burlington Industries, one of the world’s most diversified marketers and manufacturers of softgoods for apparel and interior furnishings.

    2004: (73 years old)

    • Buffett’s wife, Susan, dies of a stroke in Wyoming, where the couple was visiting friends.
    • Bill Gates Elected as Director of Berkshire Hathaway.

    2005: (74 years old)

    • Ebay auction lunch with Buffett sells for $351,100.
    • General Electric and Berkshire Hathaway announced that GE Insurance Solutions has entered into a letter of intent for the sale of Medical Protective Corporation, one of the nation’s premiere professional liability insurers for physicians and dentists, to National Indemnity, a unit of Berkshire Hathaway.
    • Berkshire Hathaway acquires Forest River from its founder and CEO, Peter J. Liegl. Forest River is a leading manufacturer of leisure vehicles in the U.S. The company manufactures a complete line of motorized and towable recreation vehicles, utility trailers, buses, boats and manufactured houses.
    • Despite insurance business losses of about $2.5 billion caused by Hurricane Katrina, Berkshire records a $5.6 billion gain in its net worth.

    2006: (75 years old)

    • Ebay auction lunch with Buffett sells for $620,100.
    • Buffett announced in June that he would give away more than 80%, or about $37 billion, of his $44 billion fortune to five foundations in annual gifts of stock, starting in July 2006. The largest contribution will go to the Bill and Melinda Gates Foundation.
    • He auctioned his 2001 Lincoln Town Car on eBay to raise money for Girls Inc.
    • Buffett marries Astrid Menks.
    • Berkshire Hathaway acquires Business Wire, a privately held company that is a leading global distributor of corporate news, multimedia and regulatory filings.
    • Berkshire Hathaway acquires Russell Corporation, a leading branded athletic and sporting goods company.
    • Berkshire Hathaway has agreed to acquire 80% of the Iscar Metalworking Companies (IMC) in a transaction that values IMC at US$5 billion. The Iscar Metalworking Companies is a privately held group, with operations worldwide, and is an industry leader in the metal cutting tools business through its Iscar, TaeguTec, Ingersoll and other IMC group companies.
    • Berkshire Hathaway announced the successful completion of its acquisition of Applied Underwriters, the industry leader in integrated workers’ compensation solutions and all of its subsidiaries — including its North American Casualty insurance companies.
    • Berkshire Hathaway acquires TTI, Inc., a privately held electronic component distributor headquartered in Fort Worth, Texas.

    2007: (76 Years old)

    • Ebay auction lunch with Buffett sells for $650,100. One of two investors who put up the bid was Mohnish Pabrai, famous value investor.
    • Buffett looking for a younger successor or perhaps successors to run his investment business.
    • In a letter to shareholders, Buffett announced that he was looking for a younger successor or perhaps successors to run his investment business. Buffett had previously selected Lou Simpson, who runs investments at Geico, to fill that role. However, Simpson is only six years younger than Buffett.
    • Buffett travels to Asia – China to visit Iscar’s plant and South Korea.
    • Berkshire Hathaway acquires Boat America Corporation, which owns Seaworthy Insurance Company and controls the Boat Owners Association of the United States.
    • Berkshire Hathaway acquires leading jewelry manufacturers Bel-Oro International and Aurafin LLC, which were merged into Richline Group.
    • Berkshire Hathaway acquires 60% of Marmon Holdings, Inc. formerly owned by Jay Pritzker family.

    2008: (77 Years old)

    • Buffett becomes the richest man in the world according to Forbes.

 

Have fun reading.

Mind Kinesis Research Team,

 

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