Last time, we explored Warren Buffett's early foray into assisting his friends in launching their own businesses, witnessing their growth as budding entrepreneurs during high school.
The Lesson of Letting Capital Work for Him
In 1945, when Warren Buffett was young, he did something smart. He used the money he saved from delivering newspapers in high school to buy a farm from his dad for $1,200. Instead of keeping the farm for himself, he rented it to other people, bringing in a regular income.
While Warren Buffett was in high school, his work with pinball machines taught him an important lesson: how to make money work for him. This skill started developing when he was young.
While others were working hard, Warren Buffett would hang out and talk about what he learned from reading many business books. He read a hundred of them before finishing high school. He sometimes asked friends to give him math problems with two-digit numbers, and he always got the right answers.
Danley's Perspective on Buffett's Potential
Due to his close association with Warren Buffett's pinball enterprise, a witness named Danley couldn't help but proclaim, "I had no doubt that Warren Buffett was destined for a life of success. Growing up, he was the sharpest individual I ever encountered, perhaps the most astute American I've known in my lifetime."
Danley also reminisced about Buffett's letter when they were discussing investment opportunities. In 1951, Danley inherited $6,000 from his deceased parents and contemplated potential business ventures. He was convinced of Warren Buffett's unique prowess and decided to make a courageous move.
Danley believed in Warren Buffett a lot. He didn't just invest his $6,000 inheritance but also all his savings of $25,000 in a partnership with Buffett. He bought shares in Berkshire Hathaway and held onto them for over 50 years. This was a very good decision because Berkshire Hathaway's returns grew by an incredible 1,091,899% from 1964 to 2018, making Danley rich.
Warren Buffett Story: A Legend in Investing
Warren Buffett has rightfully earned a legendary status owing to his philosophy, work ethic, and remarkable success. While numerous accomplished entrepreneurs and magnates emerged from pioneering products, industries, or inventions that monopolized specific sectors, Buffett stands alone as the embodiment of pure investment, venturing into stocks and businesses. Rather than starting from scratch, he adeptly positioned himself in the early stages of numerous enterprises, transforming them from unpolished gems into premier products that would shine in the future. His ability to maintain a resilient posture despite market fluctuations is unparalleled, transcending even the expertise of entire teams. This is precisely why his investment philosophy and life motto have become timeless classics, serving as a beacon for seasoned professionals and ordinary individuals worldwide seeking to master the art of investing.
Rather than starting from scratch, he adeptly positioned himself in the early stages of numerous enterprises, transforming them from unpolished gems into premier products that would shine in the future. His ability to maintain a resilient posture despite market fluctuations is unparalleled, transcending even the expertise of entire teams.
By the time Warren Buffett graduated from high school, he had amassed $5,000, akin to approximately $50,000 in today's currency. This marked his first substantial financial milestone.
So, that's the end of the story about Warren Buffett in high school. In the next part, we'll discuss what happened when he went to college.
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