There is a quote that says “People on the top, didn’t just fall there”. Warren Buffett serves as a living example for the testament. Looking at the people who are rich, all we see is their wealth.
The journey and the struggles which they have encountered often stay hidden. It takes years of hard work and a lot of sacrifices to reach the place which Warren Buffett has reached. There is a need to know the success story of Warren Buffett.
While there are people who are rich by birth, there are some who have to work their way to the top. Warren Buffett is a great example for the people who are looking out for some motivation. This article portrays how Warren Buffett became the man who he is now.
Warren Buffett, the “Oracle of Omaha”. Before he started to make about $2 million a day, he was a kid who earned $5000. It is estimated to be about $53,000 today.
Gum & Coca-cola
At age 6, Warren buffet earned by selling gum sticks in his neighbourhood. He carried flavours such as Juicy Fruit, Spearmint and double mint in a tray. Eventually, he sold them for a price of one nickel for a pack of five.
He refused to sell those gums piece by piece and says it was against his principles. Buffett has mentioned that his profit margin of selling Coca-cola was better when compared to selling gums. That’s how the success story of Warren Buffett started.
At age 13, Buffett took up a job that most people might look down at today. He started working as a Paperboy and delivered copies of the Washington Post. He woke-up at 4.30 in the morning and challenged himself to deliver faster than before.
By age 15, Warren Buffett started earning about $2000 just by delivering papers. He invested $1,200 of his profits in buying a 40-acre farm. He later sold it to a Nebraskan farmer.
Starting A Company
Buffett realized that he has made enough money out of other people’s companies. He began a company of his own. He started off with selling used Golf balls. Also, he bought refurbished golf balls for $3.50 and sold them for $6.
Collecting ‘losing’ Tickets
A friend’s mother introduces Warren Buffett to Ak-Sar-Ben which was a local race track. Though he was too young to gamble, he made money by collecting things that people threw away. He saw people throwing betting tickets away if their horse came second or third in a race.
They thought they would get to money for it. But Buffett along with his friend would collect these tickets from the floor. He describes his experience as ‘fun’ even though he was working in spilt beer and food scraps.
Since they did not allow kids to cash-in the tickets at that time, Buffett would later give them to his aunt. His aunt used to cash in the tickets for them which earned him some extra cash. He ultimately began to visit local horse races with his golf coach to bet on the horses by analyzing the statistics.
Buffett later set-up a company called “Buffett’s Approval Service”. He sold collectable stamps to people who lived out-of-state.
He extended his business to polishing cars. He set up “Buffett’s showroom shine” with the help of his friend. The two young men ran the business in his friend’s father’s used-car lot. They dropped the business because it involved too much manual labour.
Setting Up Pinball Machines
At age 17, Warren Buffett came up with a business idea that had huge potential. He told his friend about it. He bought old pinball machines for $25. His friend was asked to fix it while Buffett went looking for partnerships. Buffett approached barber shops asking for them to set up the pinball machine. In return, he expected half of the profits.
Warren developed an imaginary identity for himself called “Mr Wilson’s Coin Operated Machine Company” which never actually existed. The barber was amused since he received $4 just on the first night.
Buffett made a profit of $25 in his first week which he invested in a new pinball machine. He continued his journey until he had seven or eight machines around the town which earned him a stable revenue.