Warren Buffett turns 94 today. Here are 6 of his best birthday stories.
Warren Buffett celebrates his 94th birthday on August 30.
The famed investor may be proud of Berkshire Hathaway's $1 trillion valuation and his charity work.
Here are six of Buffett's best comments and stories about birthdays.
Warren Buffett turns 94 on Friday, August 30.
The legendary investor and Berkshire Hathaway boss, already the oldest and longest-serving CEO of a S&P 500 company, has much to celebrate:
He's grown Berkshire from a couple of textile mills in 1965 into a $1 trillion conglomerate.
His company owns scores of businesses including Geico, See's Candies, Dairy Queen, NetJets, Jazwares, PacifiCorp, Fruit of the Loom, Pilot Travel Centers, and the BNSF railroad.
Berkshire's stock portfolio is worth about $300 billion thanks to its huge stakes in Apple, Bank of America, Coca-Cola, Kraft Heinz, American Express, and other blue-chip companies.
Buffett has inspired countless investors and managers, including Google founders Sergey Brin and Larry Page, Airbnb CEO Brian Chesky, SoftBank CEO Masayoshi Son, and Pershing Square CEO Bill Ackman.
The investor has struck dozens of high-profile deals, from bailing out Goldman Sachs, General Electric, and Harley-Davidson during the financial crisis, to helping to finance Mars' takeover of Wrigley around the same time.
Since 2006, he has donated more than half of his Berkshire shares, worth about $55 billion when received, to the Bill & Melinda Gates Foundation and four family foundations. Through the Giving Pledge, he has also secured commitments from dozens of the world's wealthiest people to give at least half their fortunes to good causes.
He continues to rank him among the world's 10 richest people, with a personal fortune of $148 billion.
In recognition of Buffett turning 94, here are six of his best comments and stories about birthdays:
1. Shooting for a century
Geico, one of Buffett's oldest and most lucrative investments, has surpassed rivals such as Progressive and Allstate in terms of premium volumes over the years. Buffett wants the auto insurer to be No. 1 in six years.
"On August 30, 2030 — my 100th birthday — I plan to announce that Geico has taken over the top spot, " Buffett said in his 2015 shareholder letter. "Mark your calendar."
Buffett reiterated his goal at Berkshire's 2016 annual meeting.
"I hope on my 100th birthday that the Geico people announce to me that they passed State Farm," he said. "But I have to do my share on that, too, by getting to 100."
2. Counting candles
Buffett is never pleased to see another year go by, but he's not afraid to joke about his advanced age.
"At my last birthday, somebody asked me how old I was," the investor recalled during Berkshire's annual meeting in 1998. "And I said, 'Well, why don't you just count the candles on the cake?' And he said he was driven back by the heat."
Since then, Buffett has added more than 25 additional candles to his birthday cake, meaning his well-wishers could face a raging inferno this year.
3. Huggins' Law
Buffett and his business partner, Charlie Munger, acquired See's Candies for $25 million in 1972 and immediately put Chuck Huggins in charge.
In his 1999 letter, Buffett credited Huggins' "fanatical insistence on both product quality and friendly service" for See's generating $857 million in pre-tax income since Berkshire took over.
See's pre-tax profit in millions was about 10% of Huggins' age when he took over aged 46, Buffett said in the letter. That ratio soared to 100% by the time he turned 74, the investor continued.
"Having discovered this mathematical relationship — let's call it Huggins' Law — Charlie and I now become giddy at the mere thought of Chuck's birthday," he joked.
4. Birthday present
Buffett received a particularly nice birthday gift in 1983 when Mrs B, the owner of Nebraska Furniture Mart who was 89 at the time, agreed to sell the company to him.
"I think back to August 30, 1983 — my birthday — when I went to see Mrs. B (Rose Blumkin), carrying a one-and-a-quarter-page purchase proposal for NFM that I had drafted," he recalled in his 2013 letter.
"Mrs B accepted my offer without changing a word, and we completed the deal without the involvement of investment bankers or lawyers," Buffett continued.
"Though the company's financial statements were unaudited, I had no worries," he added. "Mrs B simply told me what was what, and her word was good enough for me."
5. Party games
Buffett shared an example of Berkshire's "carefully crafted and sophisticated acquisition strategy" in his 1996 letter.
The investor tried to avoid the 40th birthday party of his nephew's wife, Jane Rogers, but he agreed to go after learning he would be sitting next to Jane's dad, Roy Dinsdale.
During the party, Dinsdale revealed he had attended a directors' meeting at Kansas Bankers Surety, an insurance firm that Buffett had long admired. Buffett told Dinsdale to let him know if the company ever came up for purchase.
A couple of weeks later, Buffett received a letter from Dinsdale containing KBS's financial information. The next day, he called Dinsdale to offer $75 million for the company, and the pair soon struck a deal.
"I'm now scheming to get invited to Jane's next party," Buffett joked.
He added that if anyone owns a company that meets Berkshire's criteria, "and if I fail to make the next birthday party you attend — give me a call."
6. Magic touch
Buffett excels at hiring and trusting elite managers to run Berkshire's various businesses, freeing him to focus on allocating capital within and outside the company.
He made that point in his 1990 letter with a story about his granddaughter Emily's fourth birthday party a few months earlier.
Beemer the Clown asked Emily to wave a magic wand over a box of wonders.
"Loose handkerchiefs went in and, upon a magisterial wave by Emily, emerged knotted," Buffett said. "After four such transformations, each more amazing than its predecessor, Emily was unable to contain herself."
"Her face aglow, she exulted: 'Gee, I'm really good at this.'"
"That sums up my contribution to the performance of Berkshire's business magicians," Buffett quipped, listing several star managers including Mrs B's family members and Huggins. "They deserve your applause."
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