First published: January 22, 2023 @ 6:00 pm
The Snowball: Warren Buffett and the Business of Life by Alice Schroeder
Do you feel like you could use a bit of financial education from an American success story? If so, you’ll want to read The Snowball: Warren Buffett and the Business of Life by Alice Schroeder.
The internet stocks and bubbles have given many people the idea that you need to be a genius with numbers in order to make money in the stock market. But Schroeder takes readers on a fascinating journey of how one man’s investment skills and perseverance has led to Buffett’s immense success in life.
This book is for aspiring and current business owners alike. Schroeder covers Buffett’s early years, his investment strategies, and his personal life. The Snowball is an interesting read that will teach you a lot about one of the world’s richest people.
This is Warren Buffett’s only biography, which is based on the fact that Buffett was the “Oracle of Omaha” and became a very successful value investor. It details the life of one of the world’s greatest people, covering nearly all of his achievements.
With a keen perception for business and an unyielding work ethic, Buffett has built an empire worth tens of billions of dollars.
His mix of strengths – including an innate understanding of value, a knack for spotting trends, and a steadfast belief in the power of compound growth – has made him one of the most successful American investors of all time.
Human nature being what it is, Warren Buffett’s success has not come without its challenges. The business days can be long and the pressure intense, but Buffett has never backed down from a fight.
Alice Schroeder, the gifted writer and the only Wall Street analyst that Warren Buffett even talked to for a few years, was finally asked to write his biography.
In general, these are overall lessons and some from Warren Buffett’s story of life.
1. Start now, even if it’s late.
2. Be patient and start investing soon.
3. Have a good reputation.
Start Early
Warren Buffett was an introvert born to a very loving mother, and he loved to learn numbers. Warren was able to memorize everything that his grandfather taught him when he was about eight years old.
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He also enjoyed going to his Dad’s office every day. Warren Buffett was able to start earning money at an early age. His parents were very devoted to him.
Warren Buffett found his passion – earning money, figuring out how to invest and creating money – early in his life. Most of us don’t have that passion, and those who do, aren’t always that lucky.
Most people don’t have passions like Warren does, but even people who have passions like Warren do put off investing because they don’t have the time or the knowledge to start doing something about it.
Warren did more than just read. He did things. He started doing things. Warren put down his books and went to work.
Be Patient
It’s as if there’d been a North Star that constantly guided Warren Buffett throughout his life, and that would be patience. Buffett repeatedly decided to give up his money in order that something good would happen in the future.
Warren Buffett often learned from his mentor Benjamin Graham that good companies are like unneeded cigarettes; people think they’ll never be worth anything; but, actually, some of them have a few puffs in them.
Warren Buffett only invested in companies that were truly valuable, and those opportunities rarely come along. But if something good came along, he was patient, and didn’t take just any opportunity.
Warren Buffett always made sure that the money he made from his business investments would go into his other businesses, and he wouldn’t invest in stock market.
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When Berkshire Hathaway, which he bought at a discount of $10 million, didn’t turn a profit, he was patient to continue to save money and to buy new shares.
How about those SEC investigations that began in 1974 and ended in 1981? He patient waited to see whether the SEC investigation would continue or not.
Build Connections
When builing connections, being patient is great. It lets you do what feels like a shortcut, rather than doing the long-run, honest thing that’s smart.
When you stop trying to get results fast, you’ll start to act with integrity. Very few people can do that. Warren has always been worried about his reputation as much as his net worth.
Since your family will be the last people that’ll remember you after you die, it’s difficult to create a good public image for yourself and others even if you’ve already died.
Warren has always been very careful about what he says and does. Even in times of crisis, he’s always stuck to his principles.
Warren Buffett’s reputation for integrity led him to offer to help one of his best friends, John Gutfreund, in exchange for his support in purchasing shares in GEICO. Warren moved to a company that was hacked up by a huge scandal in 1991
He quickly put a new team in place and brought about some changes. He continued to act faithfully when his company’s reputation was most at stake.
Final Thoughts and Review
Thinking about the internet stock prices and how to make money in the market can seem like a daunting task, but Schroeder takes the mystery out of it by sharing the life story of one man who has become one of the most successful and richest people in the world: Warren Buffett.
The fascinating story of Warren Buffett is one of immense accomplishment. Business associates and investors alike often cite Buffett’s ability to identify undervalued companies and invest in them as the key to his success.
Alice Schroeder’s book is not just a monumental biography of Buffett, but also a fascinating study of the complex business life and larger philosophy.
The complicated life lessons that Schroeder extracts from Buffett’s life story are applicable to anyone looking to improve their financial situation or learn more about how to be successful in life.
Banks, brokers, and analysts have long praised Buffett’s business acumen. Schroeder chronicles Buffett’s early life and how he developed his unique approach to investing.
The business history of Buffett and his investment strategies are explored in depth, as are his personal life philosophies. The enormous impact that Buffett has had on the business world is undeniable, and his fascinating story is sure to inspire readers of all ages.
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