Photo: Susie Buffett, via Forbes
In a short article for ForbesLife, Warren Buffett describes the earliest years of his career–as well as the decision that ultimately led to his becoming one of the world’s richest men.When Buffett got out of college, he says, he had $9,800.
He then worked as a stockbroker for 4 years in Omaha.
While working as a stockbroker, he occasionally sent ideas to Ben Graham, a legendary investor who had written one of Buffett’s favourite investing textbooks. Graham eventually offered him a job. So Buffett moved with his new wife Susie to White Plains and commuted to Graham’s office in New York City by train.
A year later, Graham told Buffett he was retiring. And he offered to let Buffett run the firm.
Buffett’s idol, Ben Graham, had handed Buffett the wheel of Graham’s legendary ship… but Buffett turned him down.
Because Buffett wanted to go back to Omaha.
He had saved up $127,000 by that time. And he calculated that, in Omaha, he could live well for $12,000 a year. And he thought he could generate that much each year off of his $127,000 of capital–and then get rich on the “compound interest.”
Buffett didn’t intend to manage anyone else’s money. He thought he would just be managing his own. But then a bunch of folks started giving him their money. And Berkshire Hathaway was born.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.