Today, Berkshire Hathaway climbed above $200,000 per share for the first time ever. Through a combination of longevity, intelligent risk-taking, common sense and, most of all, patience, Buffett and his company’s investing prowess have achieved immortality.
But it wasn’t always so obvious that this would be the case.
from Old School Value:
1941 – Age 11
At 11 years old, Buffett buys his first stock – 6 shares of Cities Service (now known as CITGO – an Oil company) at $38 per share. He bought 3 for himself and 3 for his sister Doris.
That is all the money he had at that time. Practiced little to no diversification at a young age which he continued to do throughout his investment career. The stock price fell to $27 but soon went to $40. He sold the stock at $40, but, the stock shot up to $202 in the next few years.
He later cited this experience as an early lesson in patience in investing.
Buffett’s first stock purchase took place during the same year that Pearl Harbor occurred – talk about “headline risk”!
The thing you need to know about life is that it goes on. Fortunately, so does American Capitalism.
Keep that in mind.