Name↓ Warren Buffett
No.↓ 3 rd steady
Net worth (USD)↓ $50.0 billion increase
Citizenship↓ United States
Residence↓ United States
Sources of wealth↓ Berkshire Hathaway
Third Richest Man In The World – Warren Buffet
Warren Buffett is a household name to many Americans as the United States citizen was one the World’s richest man through his ownership of Berkshire Hathaway. At an age of eighty, several financial analysts have questioned who will run Berkshire Hathaway once Buffett retires or has passed away. Buffett has a net worth of fifty billion dollars ($50 billion) (USD) and has seen his lead of richest person disappear as he begins to give away great portions of his wealth to charitable organizations like the Bill and Melinda Gates Foundation.
How Did Warrant Buffett Get Rich
Buffett had an entrepreneur attitude at a very young age. As a child Warren Buffett sold chewing gum and Coca Cola door to door. As he got older he began delivering newspapers and selling other items like golf balls and stamps. While in college Buffett bought a pinball machine and put it in a local barber shop essentially renting out. When he turned a profit on the machine he quickly bought more and soon had his own small business. Through the years Buffett bought small companies and undervalued assets turning them into long term profits.
Berkshire Hathaway, a large conglomerate, has used the float money provided from its insurance companies to invest in several projects over the years. Berkshire Hathaway was initially a textile company when Buffett purchase the majority control. Buffett has said that it was once of his worst investments ever as he could have invested his money in the insurance industry and made a higher profit by investing the float money.
Recognizing undervalued companies and taking passive stakes in well managed companies has served Buffett well over the years.
Companies owned by Berkshire Hathaway
- General RE
- Fruit of the Loom
- Acme Building Brands
- Shaw Industries
- Clayton Homes
- The Pampered Chef
- See’s Candies
- Dairy Queen
Along with these companies owned Berkshire Hathaway has large ownership stakes in American Express, Anheuser Busch, Coca Cola, Washington Post, and Procter and Gamble. The main sources of wealth for Berkshire Hathaway are the wholly owned subsidiaries but the investments that Buffett has made over the years have also led to remarkable returns. The stake of Coca Cola purchased in 1998 at one point had made more than what the entire company was worth.
Buffett is currently paid around one hundred thousand dollars a year to be the CEO of Berkshire Hathaway, making him one of the most underpaid bosses in the world. Buffett’s major sources of wealth are his investments in Berkshire Hathaway and his salaries from serving on several boards. How rich Warren Buffett is at any given moment is always essentially determined by the share price of Berkshire Hathaway.