Posts Tagged ‘good business’
Warren Buffett’s career as a professional after graduating returned to Omaha and founded a company called Buffett-Falk & Company, and I work there as an investment broker from 1951 to 1954. After working in the company of Benjamin Graham based in New York the Graham-Newman Corp. There he worked as a stock market analyst.
Buffett founded the company after Buffett Partnership, Ltd., where he worked from 1956 to 1969 in Omaha and served there as a partner. An interesting fact about this stage of Warren Buffett was in 1962 was the YEAR that Buffett first bought shares of the UK-based company named Berkshire Hathaway.
The company’s portfolio at that time Buffett was worth $ 9,856,297. The portfolio of this company (Buffett Partnership, Ltd.) was with 50 Positions Long and short positions 4. The Top 5 accounted for 52% and if you added up the 10 largest positions, these represented 72%. At the end of that year the company Buffett bought 30.752 shares at $ 7.62 per share, now those shares have a value of 3 billion dollars, i.e. 22.8% with compound interest for 46 years, absolutely incredible.
At that time Buffett still not very well fixed in the quality of the business but rather in the information he possessed of such Moody’s manuals which sought, influenced by his mentor Graham, companies selling at a discount or a lower price of its liquidation value or its net working capital work (Total assets – Total liabilities divided between the number of shares).