Fascinating Forbes Article by Warren Buffet – “When I was 25…”

Fascinating Forbes Article by Warren Buffet – “When I was 25…”

Lender · Salt Lake City, UT · Member since 2012 · 714 posts · 169 votes

Forbes is doing a great series about Warren Buffet’s early years. I read a snippet this AM online. For anyone with a fund, whether a real estate investment fund, hedge fund, private lending fund, or otherwise, it gives you a gleam of hope about starting small and well, doing what he did, which is going BIG. He literally started out with a $0.49 ledger and all family and friend’s money.

Do you think he had his share of pitfalls along the way? Sure he did. But, do you think he believed in what he was doing? The proof is in the pudding, as they say.

If you have a fund, whether for private money lending or investing in other assets, read this article. It may just brighten up your day….
http://www.forbes.com/sites/randalllane/2012/03/26/warren-buffetts-50-billion-decision/

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Investor · Louisville, KY · Member since 2011 · 1k+ posts · 1k+ votes
14y

I particularly like the part where he talks about buying a house VS renting. So many of my 9-5 colleagues talk about owning their house outright or ask me how long until I'll own a rental property. In today's interest rate environment, I flat out don't understand why anybody would own something outright when they could borrow against it at rates between 3.5 and 7%.

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  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y
  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    Very cool story. Thanks for sharing!

    What is intriguing is that he had his family’s money in the deal. That signals a pretty good amount of alignment with that of his investors!

  • Lender · Salt Lake City, UT · Member since 2012 · 714 posts · 169 votes
    14y

    I like the part about him saying he certainly did not want to sell people securities anymore...ha ha ha.

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y

    He obviously instilled a lot of confidence from others at an early age, including Benjamin Graham. And at the most fundamental level, it's so simple. Consistently recognize value, unlock it, and keep the growing pile of capital working.

  • Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
    14y

    Great article. I especially like it because I am 25.

  • Real Estate Investor · Santa Cruz, CA · Member since 2009 · 267 posts · 73 votes
    14y

    Read this article a few days ago. Absolutely inspiring, since I'm around the same age. It states that he had $9,800 saved when he finished college, the equivalent of $83,496 today. When he was 25, he had $127,000, the equivalent of $1,082,040 today!

  • Investor · Los Angeles, CA · Member since 2011 · 242 posts · 61 votes
    14y

    Nice article. I felt like I should read it since I am also 25. It kind of highlights the idea of keep moving forward even if your not sure what the next step is because oppurtunities may open up.

  • Developer · Houston, TX · Member since 2008 · 488 posts · 121 votes
    14y

    Great read - I really enjoyed the last paragraph. It really hits home as I'm 25 as well. Thanks for sharing.

  • Investor · Louisville, KY · Member since 2011 · 1k+ posts · 1k+ votes
    14y

    I particularly like the part where he talks about buying a house VS renting. So many of my 9-5 colleagues talk about owning their house outright or ask me how long until I'll own a rental property. In today's interest rate environment, I flat out don't understand why anybody would own something outright when they could borrow against it at rates between 3.5 and 7%.

  • Lender · Salt Lake City, UT · Member since 2012 · 714 posts · 169 votes
    14y

    Joey,
    Thanks for doing the math on that. I was wondering in my head as I read the article the equivalent of that in USD today....

  • Lender · Chicago, IL · Member since 2010 · 84 posts · 23 votes
    14y

    Nice! Since everyone on this thread is older than my tender age of 24, I must be doing something right and not a complete moron! Warren Buffett is a legend, there is no doubt about that. But realize that his early days were when the market was still hugely inefficient. The depression was still fresh in people's minds. I was at the Berkshire shareholder meeting last year and someone asked Buffett and Munger if it's more difficult to start now. They said absolutely. They were making trades like buying normal companies at .5x book value lol. Talk about margin of safety. Awesome article.

  • Investor · Member since 2009 · 132 posts · 30 votes
    14y

    Im 26 and can relate to a few others in this thread. I really like the last line of the article.

    "I wasn’t scared. I was doing something I liked, and I’m still doing it."

    My take on this is that if you are educated in what you are doing, trust your methods, you should not be scared to take calculated risks.

  • Real Estate Investor · Los Angeles · Member since 2011 · 55 posts · 11 votes
    14y

    Wow, it's good to see we have so many young bucks on BP. When I was 25 I wasn't even thinking about investing in real estate. I'm glad there's a site like this where we've got so many people who are ahead of the game.

  • Houston, TX · Member since 2011 · 673 posts · 360 votes
    14y

    I'm 26 and I feel like I am behind! Very inspiring article, So glad to have someone in the public eye to look up to that isn't involved in a sex scandal or insider trading scandal that always seems to handle adversity with integrity, AND STILL MAKE A HUGE PROFIT!

  • Real Estate Investor · Chattanooga, TN · Member since 2009 · 191 posts · 47 votes
    14y

    Great article, Corey. Wish I had started when I was 25 instead of 40 (5 years ago but who is counting). mck

  • Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
    14y
    Originally posted by McKellar Newsom:
    Great article, Corey. Wish I had started when I was 25 instead of 40 (5 years ago but who is counting). mck

    Aren't you like 27 McKellar Newsom?

  • Real Estate Investor · Chattanooga, TN · Member since 2009 · 191 posts · 47 votes
    14y

    Actually 28, James :) mck

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