The Secret To Life

Buffett's philosophy can be summed up by his own metaphor: life is like a snowball—the important thing is to find wet snow and a really long hill.

I read this book some weeks ago. It had a deep impression on me. Perhaps it was because I already love Warren Buffet even before picking the book. His life holds alot of lessons for every young person.

"The Snowball: Warren Buffett and the Business of Life" by Alice Schroeder is not just a biography; it's a window into the life of a man who has become a legend in the world of finance. Warren Buffett, known as the "Oracle of Omaha," is a figure of paradoxes: a billionaire with a frugal lifestyle, a brilliant investor who avoids technology stocks, and a public figure with a very private life.

Humility and the Inner Scorecard

One of the most striking aspects of Buffett's character, as revealed in the book, is his humility. He instructed Schroeder to use the less flattering version of events when his memory conflicted with others'—a testament to his commitment to honesty. This humility is intertwined with his concept of the "Inner Scorecard," a personal metric for behavior that values one's own standards over external validation.

The Early Years: A Snowball in Motion

Buffett's journey began with a deep fascination with numbers and a precocious business sense. As a child, he memorized license plates and started his own ventures, such as selling packs of chewing gum. His early forays into finance included trips to the racetrack and his father's brokerage firm, where he began to see the world through the lens of investment.

Unconventional Wisdom

Buffett's life is filled with decisions that defy conventional wisdom. He was rejected by Harvard but found his way to Columbia, where he studied under Benjamin Graham, a pivotal influence on his investment philosophy. His early business ventures, like the $25 pinball machine idea, showcased his innovative thinking. Even his approach to education was unique; the one class he enjoyed in his freshman year was "Industry 101," which focused on the practical aspects of running a business.

The Man Behind the Wealth

Schroeder's biography goes beyond Buffett's financial acumen to explore his personal life. His relationship with his family was complex; despite his success, he maintained a somewhat distant relationship with his children and relied heavily on his wife for family and philanthropic matters. His dating history and the dynamics of his marriage are also candidly discussed, providing a fuller picture of the man behind the billions.

Lessons in Frugality and Focus

Buffett's frugality is legendary. Despite his immense wealth, he has lived a life of remarkable simplicity. His voracious reading habit and focus on his inner moral code are key elements of his success. He also acknowledges his privilege, referring to his circumstances as "winning the ovarian lottery," yet it's clear that his achievements are the result of his intense focus, drive, intelligence, and hard work.

The Business of Life

Buffett's philosophy can be summed up by his own metaphor: life is like a snowball—the important thing is to find wet snow and a really long hill. This metaphor encapsulates his approach to building wealth and success through compound interest and long-term growth.

The Snowball Effect

Buffett's story is not just about accumulating wealth; it's about the snowball effect of good habits, smart decisions, and a relentless pursuit of knowledge. His life lessons extend beyond finance, offering wisdom on living a life that aligns with one's values and goals. In "The Snowball," readers are given an intimate look at Buffett's journey, from his early days as a numbers-obsessed boy to his status as a global financial icon. The book is a testament to the fact that while Buffett may have been fortunate, it was his unique approach to life and business that truly made him one of the wealthiest men in the world.