Hombres con estilo and power: Warren Buffett

Warren Buffett is the second richest man in the world, his fortune is around 62 billion dollars.

Born August 30, 1930, in Omaha, Nebraska; and is one of the largest investors in the world and is the largest shareholder and CEO of Berkshire Hathaway. His first share was bought when he was only 11 years old and today he declares that he is sorry for not having done it before, at the age of 14 he bought a small farm with his newspaper delivery savings. Buffet lives in Omaha, in a three-bedroom house that he bought more than 50 years ago when he got married.

In the month of September, his shares in Berkshire Hathaway fell 15%, Bill Gates surpassed him, it is also estimated that his fortune for 2010 will reach 92 billion dollars.

Buffett is also a well-known philanthropist. In 2006, he announced a plan to give away his fortune to charity; 83% of it will go to the Bill and Melinda Gates Foundation. In 2007, he was included in Time magazine's list of the 100 most influential people in the world. Buffet is also a member of the Grinnell College Board of Trustees.

A recent interview Buffett had with CNBC gave them details of his philosophy of life and how he managed to become a billionaire:

• He maintains that he has everything he needs in his house, the one he bought 50 years ago. There it doesn't even have bars.

• He does not have a driver, he drives his own car and he does not have security personnel either.

• He never travels in private jets, despite owning the world's largest private jet airline.

• His Berkshire Hathaway company owns 63 companies.

• He writes one letter a year to each CEO of the companies wishing them good omens for the coming year.

• They never hold meetings or call them regularly on the phone.

• He gave only two rules to his managers. Number one: never lose money from shareholders, and number two: never forget rule number one.

• He does not socialize with the upper class. Her hobby when she gets home is making popcorn and watching television.

• He does not use a cell phone or a computer. When asked what recommendations he would give to young people, he responded with the following rules:

• Stay away from credit cards and invest your savings in yourselves and remember the following: money does not create man, it is man who creates money.

• Live your life as simple as you are.

• Don't do what others tell you, just listen to them. Just do what makes you feel good.

• Do not use things for their brands, only use what makes you feel comfortable.

• Do not spend your money on unnecessary things, spend it on things you really need.

• After all it is your life, why give the opportunity to others to handle it for you.

Buffet, today known as "the oracle of Omaha", began operating with US $ 100 of his own and today reached a fortune of US $ 52 billion. Basically, the twenty rules of his success were:

1.- Never invest in a business that you cannot understand, such as complicated technologies.

2.- If you can't see your investment drop 50% without panic, don't invest in the stock market.

3.- Don't try to predict the direction of the stock market, the economy, interest rates, or elections.

4.- Buy companies with a good track record and a dominant market position.

5.- Be fearful when others are greedy and vice versa.

6.- Optimism is the enemy of the rational buyer.

7.- The ability to say "no" is a huge advantage for an investor.

8.- Much of the success can be attributed to inactivity. Most investors can't resist the temptation to constantly buy and sell, but the cornerstone should be lethargy, bordering on laziness.

9.- Wild price swings are more related to investor behavior than business performance.

10.- An investor needs to do very few things right if he or she avoids big mistakes. You don't have to do anything extraordinary to get great results.

11.- Don't take annual results seriously, but take four- or five-year averages.

12.- Focus on ROI (not earnings per share), level of indebtedness, and profit margins.

13.- Always invest for the long term.

14.- The advice that "never bankrupt taking a profit" is absurd.

15.- Always remember that the stock market is manic-depressive.

16.- Buy a business, do not rent the shares.

17.- Look for companies with broad markets, strong brand image, and loyal consumers, like Gillete or Coca Cola.

18.- Also interesting are some companies with established brands but which are undervalued due to temporary difficulties. To look for these opportunities, bear markets must be taken advantage of.

19.- Look for companies with high cash-generating capacity and that, once up and running, do not require large reinvestments.

20.- The more absurd the market behavior, the better the opportunity for the methodical investor.

Fonts: Wikipedia, iprofessional, Forbes