Warren Buffet is now the world’s richest man, Bill Gates, second

Posted on October 11, 2008
Filed Under Information, LIFE, Thoughts | Viewed 11229 times

Interesting Read: The Economy–The Real Breakdown: $2.3 trillion missing

Ooooopppss!

After 15 years, the world’s richest man in the Forbes 400 list, Bill Gates, is now only the 2nd—and in only 33 days at that (29 August-1 October). Blame it on America’s credit crisis.

A recalculation of the world’s 400 richest was made based on the effects of the crisis. Gates’ net worth declined by $1.5 billion to $55.5 billion, while Warren Buffet of the Berkshire Hathaway, Inc. added $8 billion to his net worth, now totalling $58 billion, making him now the world’s richest man.

I am yet to find out the “why oh why” of this for Bill Gates. As for Warren Buffet, credit this to his wisdom and luck maybe…let’s see what the coming days will bring.

From Wikipedia:

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Warren Buffett (born August 30, 1930) is an American investor, businessman and philanthropist. He is one of the world’s most successful investors, and the largest shareholder and CEO of Berkshire Hathaway. He was ranked by Forbes as the richest man in the world during the first half of 2008 with an estimated net worth of $62.0 billion. As of September 17, 2008 his net worth has dropped to $58.0 billion. On Oct. 10th 2008 Forbes magazine published him as being the richest man in the US, passing Bill Gates by $ 3.5 Billion.

Often called the “Oracle of Omaha”, Buffett is noted for his adherence to the value investing philosophy and for his personal frugality despite his immense wealth. His 2006 annual salary was about $100,000, which is small compared to senior executive remuneration in other comparable companies. When he spent $9.7 million of Berkshire’s funds on a business jet in 1989, he jokingly named it “The Indefensible” because of his past criticisms of such purchases by other CEOs. He lives in the same house in the central Dundee neighborhood of Omaha that he bought in 1958 for $31,500, today valued at around $700,000.

Buffett is also a notable philanthropist. In 2006, he announced a plan to give away his fortune to charity, with 83% of it going to the Bill & Melinda Gates Foundation.[In 2007, he was listed among Time’s 100 Most Influential People in The World. He also serves as a member of the board of trustees at Grinnell College.

Here are some very interesting aspects of his life (based on a one hour interview on CNBC some months back, with Warren Buffet, then the second richest man who has donated $31 billion (85% of his fortune) to charity:

1) Warren bought his first share at age 11 and he now regrets that he started too late!

2) He bought a small farm at age 14 with savings from delivering newspapers.

3) He still lives in the same small 3 bedroom house in mid-town Omaha, that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.

4) He drives his own car everywhere and does not have a driver or security people around him.

5) He never travels by private jet, although he owns the world’s largest private jet company.

6) His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls them on a regular basis.

7) Warren Buffet has given his CEO’s only two rules.

Rule number 1: Do not lose any of your share holder’s money.

Rule number 2: Do not forget rule number 1.

He does not socialize with the high society crowd. His past time after he gets home is to make himself some pop corn and watch television.

9) Bill Gates, the world’s richest man met him for the first time only 5 years ago. Bill Gates did not think he had anything in common with Warren Buffet. So he had scheduled his meeting only for half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet.

10) Warren Buffet does not carry a cell phone, nor has a computer on his desk.

11) His advice to young people: Stay away from credit cards and invest in yourself.

Source: ChinatownConnection.com

And here’s the transcript of an awesome 3-hour interview in August 2008 by CNBC.

HAPPY WEEKEND, folks!

Stumble It!

Comments

6 Responses to “Warren Buffet is now the world’s richest man, Bill Gates, second”

Sidney on October 11th, 2008 8:28 pm

Where are you on the list?
Flor P. Velasco on October 12th, 2008 9:12 am

where is the Mexican guy who owns the Telecom business in Mexico? I think ha …”he is the richest man in the world”....can you pls research?
Ian on October 12th, 2008 9:01 pm

Yeah, I thought that Mexican gentleman was the richest man.. maybe its different sources?

I heard that Bill Gates is moving down in wealth from his charity work..
Archie Doe on October 14th, 2008 1:29 am

Dr.Buffet:
This a boy who worrying to go University but no
money to suport him, so Dr. Buffet I want you to help me any thing that suport me go school.
I am a Liberia living in Liberia, a high School greguate from Pleebo high School at Marylad County Liberia.
May the Amighty God Bless you as you adhere of reguest.
Best reguard
Archie Doe
Contact # +231-6672-584
Bill Vincent on October 14th, 2008 10:21 am

Warren Buffet is definitely a man to be admired. When I first heard of him some years ago, I, like many others, automatically disliked him for his immense wealth. After learning about his life and accomplishments, he now tops my list on people I can only dream of emulating.
Steven Shaw BBA LUTCF MSM MSFS on October 18th, 2008 8:00 pm

What a great leader, role model, father, man(ethical), and business mind. We are one lucky country to have the wisdom of Warren Buffet. Warren Buffet adds value to the WORLD and makes it a better place for us ALL!