After graduating from Columbia University, Buffett first worked in his father's institution for a while, and later joined his mentor Graham Newman. 1956 Graham retired. After the company was dissolved, Buffett, 26, established Buffett's partnership "Buffett Limited" and raised 105000 USD. Buffett is a general partner, but he only invested 100 USD. The other seven partners receive a fixed income of 6% of the invested capital every year. At the same time, among the remaining profits, other partners except Buffett share 75% of the company's profits, and Buffett earns the remaining 25%. To put it bluntly, it is to make money with other people's money, that is, private equity funds. If the performance is not good, giving others a fixed income of 6% every year will make you breathless. Fortunately, the old bus is doing very well, with a profit of more than 30% every year. )

Because Buffett's investment performance is extremely high, more and more people want Buffett to manage the investment, so Buffett set up more investment partnership companies, and later merged these investment partnership companies into one. In this way, Buffett dug the first bucket of gold.

1965 Buffett's partnership bought 49% of Berkshire Hathaway's shares (in my impression, Berkshire was already a listed company at that time, mainly engaged in textiles ... instead of Buffett's creation), and later the partnership's shareholding increased to 70% of Berkshire. 1969, Buffett dissolved the partnership company and distributed all assets including Berkshire shares to all partners in proportion, just as if he had distributed more than 30% of Berkshire shares.

Later, Buffett found that textile companies would take up a lot of cash flow, so he turned Berkshire Hathaway into an insurance company (or bought one, I can't remember ...) because insurance companies can bring a lot of cash flow (who knows when to pay insurance premiums). These cash flows become investment funds. Then, with unparalleled investment skills and ability, Berkshire Hathaway's stock has risen thousands of times in more than 40 years. Berkshire Hathaway's share was 19 yuan when it was acquired, and now it is more than $20,000120,000 ... (It seems that there has never been a dividend in the middle, and it has never been broken down). Berkshire shares are specially approved by the Securities and Futures Commission of the United States, with 65,438+00 shares in each lot and 65,438+000 shares in others.

Buffett explained that there is no dividend: if Berkshire invests $65,438 +0, but fails to create $65,438 +0, it will pay dividends. "I think if Berkshire announces a dividend, its share price is likely to fall, because it will be seen as an admission that its investment opportunities are limited." You can redeem yourself if you need money.