Table of Contents
Who Is the Oracle of Omaha?
You might have heard the term 'Oracle of Omaha' thrown around in investment circles. It's a nickname for Warren Buffett, who I consider one of the greatest investors ever. As the chair and CEO of Berkshire Hathaway, he took control of the company in the mid-1960s.
People call him the Oracle of Omaha because investors hang on his every word about market picks and comments, and he operates out of Omaha, Nebraska. That's where he lives and works.
Key Takeaways
Let me break this down for you directly. Billionaire Warren Buffett, based in Omaha, Nebraska, earned the nickname Oracle of Omaha as one of the most successful and watched investors globally.
He built his fortune through value investing, which means buying undervalued stocks with strong fundamentals at a discount and holding them long-term.
Buffett leads Berkshire Hathaway, which owns more than 60 companies, including GEICO Insurance, Duracell, and See's Candies.
Wealth and Net Worth
Warren Buffett ranks among the richest people worldwide. He amassed his wealth with a straightforward investment strategy: take long-term positions in fundamentally sound companies trading below their intrinsic value.
Some of his well-known investments include Coca-Cola, Gillette, and Dairy Queen. As of May 2025, his net worth is estimated at over $156 billion.
Here's a fast fact: In 2006, Buffett pledged to donate over 99% of his fortune.
The Oracle of Omaha’s Early Years
Warren Buffett was born in Omaha, Nebraska, in 1930 to Howard and Leila Buffett. His father worked as a stockbroker, giving him an early exposure to the stock market.
He bought his first stock at age 11—three shares of Cities Service Preferred for $38 each, sold at $40, but it later rose to $200. I think this taught him patience in investing.
In his teens, Buffett ran a paper delivery business and filed his own taxes. He started a pinball machine business in high school and sold it for $1,300. He earned a business degree from the University of Nebraska.
An important note: On May 1, 2021, Berkshire Hathaway's vice chair Charlie Munger indicated that Greg Abel would succeed Buffett as CEO. Abel handles Berkshire Hathaway Energy and noninsurance operations.
The Oracle of Omaha’s Investment Philosophy
Buffett practices value investing, following the Benjamin Graham school. Graham and David Dodd from Columbia Business School outlined this in their 1949 book, 'The Intelligent Investor'.
As a value investor, he buys companies below their intrinsic value that have money-making potential. He targets those out of favor with the market and evaluates them on fundamentals like return on equity and profitability.
For instance, he prefers companies with low debt-to-equity ratios and earnings growth from shareholders' equity, not debt. His quote sums it up: 'It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.'
Investing in Coca-Cola
Buffett's Coca-Cola investment stands out as one of the most famous and profitable in history, reflecting his long-term value approach.
He started buying shares in 1988 after the 1987 crash, investing about $1.3 billion for around 400 million shares, which was 6–7% of the company. He saw value in its global brand, economic moat, and steady cash flows.
By 2025, that investment is worth nearly $25 billion. Berkshire Hathaway expects $816 million in dividends from those shares, at $2.04 per share annually.
Investing In Apple
Buffett's move into Apple was a departure from his usual avoidance of tech stocks. Berkshire Hathaway began purchasing in 2016, but Buffett ramped it up, seeing Apple as a consumer products company with strong loyalty and recurring revenue.
As of May 2025, they hold an estimated 300 million shares.
Who Is Warren Buffett?
Warren Buffett is an American investor, business leader, and philanthropist, most recognized as Berkshire Hathaway's chairman and CEO. He's among history's top investors.
How Did Warren Buffett Make His Money?
He built his wealth through astute investments and business ownership, mainly via Berkshire Hathaway, which has stakes in companies like Apple, Coca-Cola, and Geico.
What Is Warren Buffett’s Investment Strategy?
Buffett uses value investing, buying quality companies at fair prices for long-term holds. He focuses on fundamentals, management, and economic moats.
The Bottom Line
Warren Buffett is a legendary investor and Berkshire Hathaway's CEO, noted for his value investing and long-term strategy. Despite his vast wealth, he lives simply and plans to donate most of it to philanthropy.
Other articles for you
M2 is the Federal Reserve's measure of the U.S
Bank capital represents a bank's net worth and is regulated to absorb losses and ensure financial stability.
Swaps are derivative contracts where parties exchange cash flows or liabilities to manage risks or speculate on market changes.
The Truth in Lending Act (TILA) mandates transparent disclosure of credit terms to protect consumers from unfair lending practices.
Liquidation value represents the net worth of a company's physical assets sold off if it goes out of business, excluding intangibles.
Direct costs are expenses directly tied to producing specific goods or services, unlike indirect costs which are harder to trace.
A master-feeder structure is a financial setup used by hedge funds to pool capital from U.S
This text provides comprehensive resources and guides on health insurance options, including best providers, costs, types, and related programs like Medicare and dental insurance.
Contingent convertibles (CoCos) are high-risk debt instruments issued by European banks that convert to equity under specific triggers to help meet regulatory capital needs.
Wildcat banking describes the unregulated state-chartered banks in remote U.S