How did Warren Buffet amass his riches?
Answers: He bought undervalued companies with well-mannered management in place and also invested within undervalued company stocks and held on to them for decades. His holding company (Berkshire Hathaway-stock symbol BRKa and BRKb) reinvests all proceeds (rather than paying dividends) and the process continues. BRK also owns GEICO and several other insurers/reinsurers and the "float" (premiums recieved but not yet paid out surrounded by claims) is also reinvested. This float generally costs next to nought. Mr Buffet is an extremely patient man. Learn more about the man and the company and the companies it owns (Dairy Queen, Coca Cola, Sees Candies, Nebraska Furniture Mart, etc) by reading his annual missive to fellow owners (shareholders) at
http://www.berkshirehathaway.com
He started out with Benjamin Grahams strategy and then sophisticated it to suit himself. Then he started a Limited Partnership and got other people to invest. After a few years he shut that down because the marketplace was overpriced. Then he started buying shares in a textile company call Birkshire Hathaway. After a few years he closed the textile operations, kept the name and started buying insurance company stocks. Insurance companies own a pool of reserves so they can pay claims. In the meantime they are invested. So Buffett had the lolly he needed to invest. He went public with it and the rest is history. okay, Warren buffet buy stocks when everyone is alarmed to invest, When everyone wants to invest he sells his shares. This is a short concept of it, but he in reality doesn't sell all his shares lone certain % of his holdings.
Stock market