Warren Buffett: The Oracle of Omaha and the Master of Value Investing

Warren Edward Buffett, born on August 30, 1930, in Omaha, Nebraska, is one of the most iconic figures in the financial world. Known as the "Oracle of Omaha" for his investment wisdom and extraordinary success, Buffett is the chairman and CEO of Berkshire Hathaway, one of the largest holding companies in the world. His life is an example of tenacity, intelligence, and discipline, which has led him from humble beginnings to become one of the richest men on the planet, with an estimated net worth of $160.2 billion as of May 2025. In this article, we explore his story, career, the origins of his nickname, his historic partnership with Charlie Munger, and his inspiration from Benjamin Graham.

Early Life: An Early Passion for Business

Warren Buffett's story begins in a modest but influential family. The son of Republican Congressman Howard Buffett and Leila Stahl, Warren grew up in Omaha, demonstrating an extraordinary interest in money and investments from an early age. At just seven years old, he borrowed a book called One Thousand Ways to Make $1,000, which sparked his entrepreneurial curiosity. As a child, he sold chewing gum, Coca-Cola bottles, and magazines door-to-door, and delivered newspapers to earn his first income. At 11, he bought his first stock: three shares of Cities Service Preferred for $114 each.

The family moved to Washington, D.C., when his father was elected to Congress, and Warren attended Rose Hill Elementary School, Alice Deal Junior High School, and graduated from Woodrow Wilson High School in 1947. Even then, his high school yearbook described him as a math enthusiast and a future stockbroker. By the end of college, he had saved about $9,800 (a substantial sum for the time) through various small businesses, such as installing pinball machines in local barbershops.

Education and Inspiration from Benjamin Graham

Buffett began his undergraduate studies at the Wharton School of the University of Pennsylvania in 1947, but transferred to the University of Nebraska-Lincoln, where he earned a Bachelor of Business Administration degree in 1951. Rejected by Harvard Business School, he opted for Columbia Business School, where he earned a Master of Economics that same year. It was there that he met Benjamin Graham, his mentor and main inspiration.

Graham, author of classics such as The Intelligent Investor and Security Analysis, is considered the father of value investing. Buffett was profoundly influenced by Graham's philosophy, which emphasizes buying stocks undervalued relative to their intrinsic value, with a "margin of safety" to minimize risk. Graham taught investors to treat stocks not as mere securities, but as parts of real companies, exploiting market fluctuations to their advantage. Buffett often stated that Graham's ideas formed the enduring foundation of his investment approach, though he later evolved them further. After graduating, Buffett also attended the New York Institute of Finance to further his knowledge.

Career: From Investor to Tycoon

Buffett's career took off in the 1950s. He began working as an investment salesman at his father's firm, Buffett-Falk & Co., from 1951 to 1954. Then, from 1954 to 1956, he was a securities analyst at Graham-Newman Corp., Graham's firm. When Graham retired in 1956, Buffett returned to Omaha and founded Buffett Partnership Ltd., a series of investment partnerships he successfully managed, becoming a millionaire in 1962.

In 1965, he acquired control of Berkshire Hathaway, a declining textile company, which he transformed into a diversified conglomerate focused on insurance and investments. He became chairman and majority shareholder in 1970, closing the textile operations in 1985 to focus on more profitable sectors. Key acquisitions included GEICO (initial investment in the 1970s), the Washington Post Company (1973), Capital Cities/ABC (1985), Salomon Inc. (1987), Coca-Cola (1988, with a 7% stake), General Re (1998), Burlington Northern Santa Fe (2009, for $34 billion), and investments in IBM (2011). During the 2008 financial crisis, Buffett became the richest man in the world, investing in Goldman Sachs and Dow Chemical.

Buffett is known for his long-term investing style: "If you're not willing to own a stock for ten years, don't even think about owning it for ten minutes." He avoids high-risk technologies and IPOs, preferring companies with enduring "economic moats," such as strong brands and consistent earnings. He has criticized the efficient markets hypothesis and promoted low-cost index funds for average investors.

The Historic Partnership with Charlie Munger

A key part of Buffett's career is his partnership with Charlie Munger, who joined Berkshire Hathaway as vice chairman in 1978. Munger, a lawyer and investor, profoundly influenced Buffett, pushing him to evolve beyond Graham's pure value investing toward purchasing quality companies at reasonable prices, rather than "wasted cigars" (undervalued but mediocre companies).

Together, they built Berkshire's culture, based on integrity, patience, and rational analysis. Munger defended Buffett from allegations of conflicts of interest in 2023, calling them unfounded. Their partnership lasted decades, until Munger's death in 2023, and was characterized by annual meetings in Omaha, where they dispensed wisdom to thousands of shareholders. Munger is often quoted as saying, "It's better to pay a fair price for a wonderful company than a low price for a mediocre one."

Why He's Considered the Oracle of Omaha

Buffett earned the nickname "Oracle of Omaha" from the global media thanks to his extraordinary investment track record and accurate market predictions. Based in Omaha, Nebraska,home of Berkshire Hathaway,his humility and frugal lifestyle (he still lives in the house he purchased in 1958 for $31,500) contrast with his immense wealth. Like an ancient oracle, he offers wise and prophetic advice, such as "Be fearful when others are greedy, and greedy when others are fearful." His success has made Omaha a pilgrimage site for investors, cementing his title as the "Sage" or "Oracle."

Recent Developments and Philanthropic Legacy

In 2025, Buffett announced his retirement as CEO of Berkshire Hathaway at the end of the year, with Greg Abel as his successor effective January 1, 2026, while remaining chairman. In June 2025, he donated $6 billion in Berkshire shares to various charities, including the Bill & Melinda Gates Foundation, bringing his total philanthropic donations to over $60 billion since 2006.

Buffett's legacy extends beyond wealth: he is a committed philanthropist, championing causes such as education and global health. His philosophy,inspired by Graham and refined with Munger,continues to inspire generations of investors, demonstrating that patience and rationality can triumph in volatile markets.

In short, Warren Buffett is not only a legendary investor, but a symbol of integrity and wisdom in the financial world. The Oracle of Omaha reminds us that true success comes from sound principles and a long-term vision.