by Bruce Fenton

Born in Omaha, Nebraska in 1930, Warren Buffett is a wealthy businessman and considered as the world’s most successful stock market investor. Through intelligently executed investments, Warren Buffett has amassed an enormous fortune. With an estimated net worth of $40 billion as of 2005, Warren Buffett is ranked by Forbes among the richest people in the world, often listed second only to Bill Gates.

Known as the “Oracle of Omaha,” Warren Buffett is the son of a stockbroker and Congressman. As a young child, he endeavored to make extra money by delivering Washington Post newspapers. At age 17, Warren Buffett has already earned $5,000: the equivalent of $47,320 in 2005. He attended the Wharton School at the University of Pennsylvania, and then transferred to the University of Nebraska. In 1951, he earned as Master’s degree in economics at Columbia Business School, studying under Benjamin Graham, chairman of a small, still unknown insurance company named GEICO.

From 1954-56, Warren Buffett worked for Graham as an investment salesman and securities analyst. In 1956, he became a partner in the investment firm Buffett Partnership, Ltd. In 1965, he acquired the textile manufacturer Berkshire Hathaway and became chairman and CEO in 1970.

Warren Buffett’s prodigious gift as a stock market investor enabled him to identify prime investments led to successful acquisitions of insurance companies and manufacturing and service firms. For Berkshire Hathaway, his strategy is simple, yet genius: he purchased or built insurance or reinsurance companies and used them as “super margin” accounts to buy equities.

Today, Berkshire Hathaway is worth more than $75 billion, and oversees and manages a number of subsidiary companies. Warren Buffett has been known to stay away from high-tech investments, saying he prefers to invest in businesses he understands. Berkshire Hathaway owns a diverse mix of companies, including: Borsheim’s Fine Jewelry, a large Omaha jewelry store; Dairy Queen; Nebraska Furniture Mart; The Pampered Chef; See’s Candies; Helzberg Diamonds stores; H.H. Brown shoes; The Buffalo News; Benjamin Moore paints; clothing manufacturer Fruit of the Loom; vacuum cleaner manufacturer Kirby Corporation; and several insurance companies, including GEICO.

Bruce Fenton is a financial consultant, a writer, and the Managing Director of Atlantic Financial Inc. Bruce welcomes inquiries, comments, and questions. He can be reached by contacting The Fenton Report.