Originally published at: https://blog.12min.com/the-snowball-summary/
Warren Buffett and the Business of Life
The fascinating bio of Warren Buffett has one particular picture which stands out from the rest: a portrait of a child playing with its favorite toy – a moneychanger.
We put in a nutshell Warren’s amazing endeavors and his route of becoming one of the world’s wealthiest individuals.
Who Should Read "The Snowball"? And Why?According to Buffett this theory is nonsense, you as an individual should eschew worrying about the changeable nature of the stock market. A good investor must easily disregard the ups and downs by understanding the stock market uncertainty.
Alice Schroeder advises you to indulge the whole economic process by “playing” you – the investor versus the business community. Enforce a proper philosophy which will overcome problems like cash deficiency.
It is a rarity to find a book adaptable for all audiences especially for professionals engaged in the economic sphere of influence – that is the case here.
About Alice SchroederAlice Schroeder was born on December 14th, 1954 in Dallas, Texas. She is a columnist, former insurance analyst, and the author of New York Times bestseller – The Snowball.
In the late 70s, Alice received her BBA and MBA from the School of Business at the University of Austin. Soon after graduation he immediately started working as a CPA for Ernst, and Young in Houston.
From 1993 till 1998 she changed several jobs all linked to insurance investment and analyzes. Initially, Alice impressed everyone with her amazing writing style (clear and concise), and on Warren Buffett’s behalf, many individuals insisted that she deserves a full-time writer status instead.
"The Snowball Summary"What is the first thing that comes to your mind when you think of Warren Buffett? Just another millionaire who inherited the wealth of his parents. On the contrary, he earned every penny by himself. Warren is not living amid Wall Street’s bustle.
Instead, he spends most of his time working in Omaha, Nebraska, a rural town in the U.S. heartland. Throughout his professional life, Omaha has been Buffett’s base for investments, even though the rest of the civilized world and business community sees it as just another second-class town of no particular importance.
From an early age, Buffet reconsidered his decision on how to earn more money and ultimately build wealth. His focus was placed on studying the stock market and trading secrets (commerce), inspired to learn as much as possible about global companies (industry leaders), their financial situation and potential for growth.
You cannot describe these methods as a learning task; it was his pleasure to implement that hard-earned knowledge which he gradually did. The results were evident, the path he chose was his guiding light.
Inch by inch Warren became and still is among the richest persons in the world. His investment approach or philosophy is only the result of Benjamin Graham’s legacy as an investment guru and his mentor.
He often used to say – seek firms whose stock values have a lower price than the organization’s “inborn” value and invest your capital accordingly. Buffett endorses the theory – A smart investor would not worry too much about stock market’s momentary ups and downs.
Warren Buffett emboldens every person, by believing – that everyone has the capacity of becoming a multi-billionaire. Despite his current financial situation, he prefers a humble way of life. Annually he receives around 100,000 dollars, income suitable for an average middle-class person.
Warren lives in the house he bought in 1958 for 31, 500 dollars located in Omaha, Nebraska. People often see him wearing an old gray suit, rather than an expensive brand. Surprisingly in the early days of Buffett’s success, when he was “only” a multimillionaire, Buffett used to wear shoes with big holes.
According to his beliefs, a man should strive to make money, not to look fancy because the wardrobe doesn’t generate profits.
Besides, who else has the credibility to speak like this?
He has a freedom to do what he finds appropriate. By the Forbes Magazine in 2008, Warren Buffett earned the title of the globe’s richest man, with an estimated net worth of astonishing $62.3 billion.
The author of “The Snowball” Alice Schroeder does an excellent job of analyzing Buffett’s unbelievable, inspiring life. Schroeder is an expert research analyst who displays Buffett’s successful investment philosophy and his business approach.
Many financiers, students, and economists praise Schroeder’ shrewd skills not only as a researcher but also as a writer.
Key Lessons from “The Snowball”1. Buffett continues to increase its wealth 2. Susie’s charities 3. Find your path to prosperity
Buffett continues to increase its wealthAs the years passed, Warren without stopping continued to keep getting richer and richer; alongside with his trusted partners and fellow investors.
In the 80s Buffett shifted from a millionaire to a multi-millionaire and ultimately reaching a billionaire status by 1985.
At that time, his estimated net worth was around $2.1 billion, placing him among the ten richest people in the United States.
Susie’s charitiesBuffett is not a greedy man; he made every person around him wildly rich by using the same philosophy he applied for himself at the stock market.
Susie Buffett started her charitable activities on behalf of Omaha’s poor African-American community.
She also tried as a part-time singer to support the community, meanwhile remaining passionately supportive of her husband’s work.
Find your path to prosperityIt is not easy to find the right answer on what techniques to use if a person wishes to become a millionaire.
Probably, the best way to resolve this mystery is to look at one of Buffett photographs, the one in which he proudly holds his favorite toy – the change maker.
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“The Snowball” Quotes[bctt tweet="Time is the friend of the wonderful business, the enemy of the mediocre." username="get12min"]
[bctt tweet=“Everybody wants attention and admiration. Nobody wants to be criticized. The sweetest sound in the English language is the sound of a person’s own name. The only way to get the best of an argument is to avoid it. If you are wrong, admit it quickly and emphatically. Ask questions instead of giving direct orders. Give the other person a fine reputation to live up to. Call attention to people’s mistakes indirectly. Let the other person save face.” username=“get12min”]
[bctt tweet=“I was in this Charlie Munger–influenced type transition—sort of back and forth. It was kind of like during the Protestant Reformation. And I would listen to Martin Luther one day and the Pope the next. Ben Graham, of course, being the Pope.” username=“get12min”]
[bctt tweet=“He thought of partners as people who had come together out of a complex set of shared values and interests, not out of short-term economic convenience.” username=“get12min”]
[bctt tweet=“The big question about how people behave is whether they’ve got an Inner Scorecard or an Outer Scorecard. It helps if you can be satisfied with an Inner Scorecard.” username=“get12min”]
Our Critical ReviewThe Snowball is undoubtedly an unconventional work capable of resolving mysteries linked to investment and finances. If you think that finances are not your area of expertise you are still living in the medieval period.
Every person should expand its knowledge concerning investments and how to manage its capital. ROI is what matters, but the today’s unpredictability makes the brokers and investors feel skeptical.