Warren Buffett is or is not an entrepreneur?

Do you know "The Sage of Omaha"?

His name is Warren Buffett.

Do you know Warren Buffett?

With the latest ranking from Forbes.com on 17 September 2008, Warren Buffett is the second richest richest American with an estimated 50 billions US Dollars fortune.

But.... I think many people know just a little about this 77 years old billionaire because his business is not in a fast growing and interesting as IT or fancy computer appliances or programs.

So... which business he is doing???

The answer is "Investment in securities"

The stock market is the main source of his wealth nowadays. He investing in common stocks with the strategy called "Value Investment" which focusing on "Value of the company" rather than "Stock price". With this strategy, he created the investment partnership and collect money from friends and neighbors to invest in the stock market since 1956.

He bought many companies which he thought that their prices are undervalued by the market. He doesn't interested in any hi-tech business. That's why he could survive from the latest IT bubble explosion in USA.

In his portfolio, there are many great companies such as Coca-Cola, American Express, Proctor&Gamble, Johnson&Johnson and so on.... His rule is "First, don't lose your money. Second, read the first rule" He will invest in the business which he understand everything about it, wait until it is undervalued by the market, buy that stock and keep it with you as long as it is a good business.

He didn't disturb any management process in the companies he bought. He just bought them then let they be the same with just 1 suggestion that don't ruin shareholders' interest.

Now, is he an entrepreneur?

He doesn't sell anything, just buy some companies which have the great products and good performance then wait for the dividend and capital gains from the market.

So easy? I don't think so....

For me, he is the great investor and entrepreneur in the same time. He considered the good business with his entrepreneurial mind set then he invest in it, sometimes it is a billion dollars investment, which need a good decision to decide that "when" you will buy it.

I my opinion, it's very hard to setup a company from the beginning then develop it through the stages of business development then list it the stock market with IPO. But, stock market give me a permission to be the owner of the companies with just buy their stock in the reasonable price as Buffett does.

Someone may said the stock market is the casino and investment in it is a gambling, Buffett is the best example who can prove that it's not true.

See you again

P.S. Latest Update : From the economic recession and crisis in financial market in USA, many stocks in finance sector are undervalued now and then, while other people running away from the stock market, Buffett bought Goldman Sach's shares with his 5 billions US dollar, and yes, in cash...

Source : http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/7632766.stm