The Film Archives
Published on May 2, 2013
Buffett became a billionaire on paper when Berkshire Hathaway began selling class A shares on May 29, 1990, when the market closed at $7,175 a share. More on Warren Buffett:
In 1998, in an unusual move, he acquired General Re (Gen Re) for stock. In 2002, Buffett became involved with Maurice R. Greenberg at AIG, with General Re providing reinsurance. On March 15, 2005, AIG’s board forced Greenberg to resign from his post as Chairman and CEO under the shadow of criticism from Eliot Spitzer, former attorney general of the state of New York.
On February 9, 2006, AIG and the New York State Attorney General’s office agreed to a settlement in which AIG would pay a fine of $1.6 billion. In 2010, the federal government settled with Berkshire Hathaway for $92 million in return for the firm avoiding prosecution in an AIG fraud scheme, and undergoing ‘corporate governance concessions’.
In 2002, Buffett entered in $11 billion worth of forward contracts to deliver U.S. dollars against other currencies. By April 2006, his total gain on these contracts was over $2 billion. In 2006, Buffett announced in June that he gradually would give away 85% of his Berkshire holdings to five foundations in annual gifts of stock, starting in July 2006.
The largest contribution would go to the Bill and Melinda Gates Foundation. In 2007, 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 ran into criticism during the subprime crisis of 2007–2008, part of the late 2000s recession, that he had allocated capital too early resulting in suboptimal deals. “Buy American. I am.” he wrote for an opinion piece published in the New York Times in 2008. Buffett has called the 2007–present downturn in the financial sector “poetic justice”. Buffett’s Berkshire Hathaway suffered a 77% drop in earnings during Q3 2008 and several of his recent deals appear to be running into large mark-to-market losses.
Berkshire Hathaway acquired 10% perpetual preferred stock of Goldman Sachs. Some of Buffett’s Index put options (European exercise at expiry only) that he wrote (sold) are currently running around $6.73 billion mark-to-market losses. The scale of the potential loss prompted the SEC to demand that Berkshire produce, “a more robust disclosure” of factors used to value the contracts.
Buffett also helped Dow Chemical pay for its $18.8 billion takeover of Rohm & Haas. He thus became the single largest shareholder in the enlarged group with his Berkshire Hathaway, which provided $3 billion, underlining his instrumental role during the current crisis in debt and equity markets.
In 2008, Buffett became the richest man in the world, with a total net worth estimated at $62 billion by Forbes and at $58 billion by Yahoo, dethroning Bill Gates, who had been number one on the Forbes list for 13 consecutive years. In 2009, Gates regained the position of number one on the Forbes list, with Buffett second. Their values have dropped to $40 billion and $37 billion, respectively, Buffett having lost $25 billion in 12 months during 2008/2009, according to Forbes.
In October 2008, the media reported that Warren Buffett had agreed to buy General Electric (GE) preferred stock. The operation included extra special incentives: he received an option to buy 3 billion GE at $22.25 in the next five years, and also received a 10% dividend (callable within three years). In February 2009, Buffett sold some of the Procter & Gamble Co, and Johnson & Johnson shares from his portfolio.
In addition to suggestions of mistiming, questions have been raised as to the wisdom in keeping some of Berkshire’s major holdings, including The Coca-Cola Company (NYSE:KO) which in 1998 peaked at $86. Buffett discussed the difficulties of knowing when to sell in the company’s 2004 annual report:
That may seem easy to do when one looks through an always-clean, rear-view mirror. Unfortunately, however, it’s the windshield through which investors must peer, and that glass is invariably fogged.
Do you want to know how to stay out of debt? In this video, Warren Buffett gives you timeless tips on how you can stay out of debt.
Who is Warren Buffett?
Warren Edward Buffett (born August 30, 1930) is an American investor, business magnate, and philanthropist. He is considered by some to be one of the most successful investors in the world, and as of February 2017 is the second wealthiest person in the United States with a total net worth of $76.9 billion.
Born in Omaha, Buffet developed an interest in investing in his youth, eventually entering the Wharton School of the University of Pennsylvania in 1947 before transferring and graduating from University of Nebraska–Lincoln. After graduating at 19, Buffet enrolled at Columbia Business School of Columbia University, learning and eventually creating his investment philosophy around a concept pioneered by Benjamin Graham–value investing.
He attended New York Institute of Finance to specialize his economics background and soon after began various business partnerships, including one with Graham. After meeting Charlie Munger, Buffet created the Buffett Partnership. His firm would eventually acquire a textile manufacturing firm called Berkshire Hathaway and assume its name to create a diversified holding company.
Buffet has been the chairman and largest shareholder of Berkshire Hathaway since 1970, and his business exploits have had him referred to as the “Wizard”, “Oracle” or “Sage” of Omaha by global media outlets. He is noted for his adherence to value investing and for his personal frugality despite his immense wealth.
COMMENTS • 316
dj johnson9 hours ago
he bought a terrible car dealership name with however many Franchises and continues on with the terrible
Mortgage Financing10 hours ago
lol just stop borrowing money
Marckenson Pierre1 day ago (edited)
Brian Warner3 days ago
GEEZ to everyone please just read his books instead. This was brutal after only 15 minutes.
Hadani Hgdef3 days ago
“Try doing something you’re passionate during your young ages.” I can’t agree more.
Douglas Edwards6 days ago
At the 17:00 minute mark he states he won the lottery. I like Warren Buffet, but his statement during this moment explains more to me that he accepts his privilege and a lot of what he is saying does not apply to all. He doesn’t mention his race so I won’t. But he states indirectly that it’s survival of the fittest. So I can’t take the advice of his in this case.
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MissFrancineTV2 days ago
If you were born in the United States you won the lottery I couldn’t agree more with what he said 👍🏼
Michele8612 hours ago
Douglas, I agree with a point you made. Him being born in the US and being born male weren’t the only 2 things on his side. If he weren’t born white, this would be a very different talk to a very different audience with a very different response. It’s just the reality regardless of whether the people commenting here agree. With all that said, I still think there are a few principles he mentions that anyone can apply to their lives if they so choose.
A Izevbizua1 week ago
Frenchie Grignon1 week ago
Being rich is a mindset.
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Brian Warner3 days ago
Frenchie Grignon Only to the blank minded and or poor.
Frenchie Grignon3 days ago
+Brian Warner Yes, by perspective.
Dan Mosey1 week ago
Robert Ryan1 week ago
Bill Gates IQ 160. Warren Buffet IQ 160…….I don’t need advice from guys with 1 in a million IQ’s. I want to hear from a guy with an average IQ and how he made it…………If you’re short then don’t ask for basketball tips from a guy that’s 7 foot. Find the shortest guy in the NBA and ask him.
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Terrence Head4 days ago
+Harry Jacob Hansen Do white people only have these I.Q.`s?
MissFrancineTV2 days ago (edited)
Terrence Head What does race have to do with anything? We are to blame for getting in our own way. My Husband’s friend built his fitness Business from his garage now franchised his Business. Now has 15 franchise owners under him and growing. He just opened a Corporate office and it all started from having a dream and pursuing that dream. He’s a short little brown Latino if he could do it we can too. He always says you have to mater the craft in your passion It takes hard work and dedication to build a successful business but very possible for anyone who is willing.
Steven Liddicoat1 week ago
how to stay out of debt: be born white and never need medical help.
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Benjamin Jones5 days ago
Steven Liddicoat I grew up 1 of 9 children and we were dirt piss poor!
Because of deciding to move across the state into a garbage extended stay hotel, just to study and be mentored under a multi millionare I changed my life. I now make between 30k – 64k a month.
Come on people…You can make excuses or you can make money but you can’t make both!
MissFrancineTV2 days ago
Steven Liddicoat That way of thinking will always keep you poor
SupercoolAxZ 1231 week ago (edited)
Sounds like around 1999, 2000 or 2001 that this video was made? Cause was talking about Y2K.
E Miller1 week ago
SupercoolAxZ 123 he said that purchased his house 41 years ago. I did the math. This was in 1999.
thanosied1 week ago
Now schools are shit because women want to be president and lead companies. thanks libs.
Sdr Jr1 week ago
thanosied May your daughter’s or granddaughters’, mom’s or wife’s bosses have pity on them if they think anything like you.
thanosied1 week ago
Sdr Jr Hey I’m just agreeing with your hero here.
Simon Wright1 week ago
I like Warren Buffet.
S2 weeks ago
Save yourself an hour:
How to stay out of debt forever? Spend less than you make.
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Wemdiculous2 weeks ago
Better plan… take that 10 percent deal then earn negative money.
Kevin Lee1 week ago
Ali Eid2 weeks ago
I wish I was one of these students attending the conference
Tonya Plans1 week ago
You had a great opportunity to attend that most don’t have. When was this conference held?
sambking2 weeks ago
Hey, Warren, How about that Long Term Capital Management problem you had? You had to have the Feds bail you out because you would have lost it all without them. Let’s talk about that…
Model Matric Higher Secondary School.2 weeks ago
Mostly people will have debts because of misjudged money evaluation. But payouts is huge based on independence.
powerlinkers2 weeks ago
when was this video recorded? Thank you for uploading. Highly appreciated.
David thomas2 weeks ago (edited)
it is 2017 I am debt-free in America I own no stocks I own no real estate I live on $17,000 a year I live within my means I pay off my debt fast and if I have no debt I save problem is inflation is still killing me. 800 credit score.
SW2 weeks ago
David thomas read everything you can get your hands on when it comes to investing. Make your money work for you. Start small, learn and go from there.