Warren Buffett's years in education: A peek into his schooling, college days and early career path

Warren Buffett, the legendary investor known as the Oracle of Omaha, has built an empire on his shrewd investment strategies and unparalleled business acumen. But behind his towering success lies a formative period that shaped his mindset, values, and approach to wealth creation. Let’s explore Buffett's schooling, college days, and early career path which unveil key insights into the foundations of his remarkable journey.
Schooling: The roots of a budding investor
Buffett's affinity for numbers and business surfaced early in life. Born in 1930 in Omaha, Nebraska, he showed an early aptitude for mathematics and a keen interest in making money. His entrepreneurial spirit emerged during his childhood, where he engaged in various ventures, from selling chewing gum to delivering newspapers.
Attending Alice Deal Junior High School in Washington, D.C., Buffett's knack for numbers flourished in his student life. He was devouring books on the stock market by his early teens and even filed his first tax return at just 14, claiming a deduction for his bicycle, which he used for his paper route.
From selling chewing gums to delivering newspapers: Buffett’s entrepreneurial journey as a school boy
Buffett's entrepreneurial spirit emerged at a young age, sparking his first ventures into business. One of his earliest endeavors involved selling chewing gum, where his knack for spotting opportunities and his natural business acumen became apparent. At the age of 6, he purchased packs of gum from his grandfather's grocery store. He spent his evenings walking from door to door, selling these packs of gum to his neighbours in the area. His venture as a kid entrepreneur didn’t end here. When Buffett was 13, he took on the responsibility of delivering copies of The Washington Post in Washington D.C. What set him apart was his drive to turn this task into a personal challenge. His father, representing a Nebraska district in Congress, instilled in Buffett a strong work ethic. This led him to wake up at 4:30 in the morning, even during Christmas breaks, to ensure timely delivery to his route of five buildings.
Buffett's determination didn’t stop at efficient deliveries. He sought ways to optimize his service. Noticing the expiration of magazine subscriptions along his route, he seized the opportunity to sell new subscriptions along with calendars, maximizing his earnings. By the age of 15, his dedication had yielded $2,000 from paper deliveries alone.
A significant move came when he chose to invest $1,200 of his earnings in a 40-acre farm, forging a profit-sharing agreement with a farmer in Nebraska. This early venture showcased Buffett's foresight and knack for investment.
Remarkably, at the age of 15, Buffett filed his first federal income tax return. In 1944, his earnings amounted to $592.50, surpassing the IRS threshold requiring all U.S. citizens—even minors earning more than $500—to file a return. This revealed Buffett's early financial acumen and responsibility, setting him apart from his peers. His disciplined approach to work, knack for spotting opportunities, and early investment decisions laid the groundwork for his remarkable journey toward becoming one of the most successful investors in history.
College days: An education in investment philosophy
Buffett's academic journey continued at the University of Pennsylvania's Wharton School. However, feeling disconnected from its theory-heavy approach, he transferred to the University of Nebraska, where he graduated with a Bachelor of Science in Business Administration.
It was at Columbia Business School, under the guidance of Benjamin Graham, known as the father of value investing, that Buffett found his investment philosophy. Buffet earned his MSc. in Economics from Columbia Business School. Graham's teachings on value investing deeply influenced him, emphasizing the importance of analyzing a company's intrinsic value and investing in undervalued stocks for long-term growth.
During this time, Buffett was also working as a stockbroker and had amassed a sizeable amount of savings, which he entrusted to Graham's investment firm. His early exposure to the practical application of investment principles laid the groundwork for his future success.
Early career path of Warren Buffet: Forging his investment empire
After completing his Post-graduation, Buffett returned to Omaha and started various partnerships, notably Buffett Partnership Ltd., where he continued implementing Graham's principles. He demonstrated his business acumen by delivering outstanding returns for his partners, further solidifying his reputation as a skilled investor.
One pivotal moment was his acquisition of Berkshire Hathaway, a struggling textile manufacturing company. Although the textile industry was outside his circle of competence, Buffett pivoted Berkshire Hathaway towards insurance and other investments, using its cash flow to fuel his investment strategies. Eventually, he phased out the textile operations entirely, marking a significant shift in Berkshire Hathaway's trajectory.
Buffett's methodology of investing in strong, undervalued companies with a focus on long-term growth became his hallmark. His annual letters to shareholders of Berkshire Hathaway became a treasure trove of wisdom, offering insights into his investment philosophy, his approach to business, and his understanding of economic principles.
Legacy of formative years
Buffett's formative years laid the groundwork for his unparalleled success in the world of finance. The lessons he learned during his schooling, college days, and early career path contributed significantly to the development of his investment philosophy, integrity, and business acumen.