Warren E. Buffett as the Bright and Notorious Example for Imitation - Essay Example

The paper "Warren E. Buffett as the Bright and Notorious Example for Imitation" is a perfect example of an essay on finance and accounting. The evolution of the monetary system has shown a great necessity of creating a general equivalent, with the help of which person is able to provide himself with goods and services and ensure vital functions. It is not random that they say money rules the world. For most of us, money plays a major role in life, becoming the main goal because material factor obtains significant power nowadays. With the right approach and disposal money is able to bring much money. Regrettably, not all investments guarantee a fair return. Therefore only people with required abilities, knowledge and intuition can transfer their contributions into huge sums of capital. The bright and notorious example for imitation is American investor Warren E. Buffett, who is considered to be the second richest man in the world. Being admired by a lot of economists and businessmen, this resolute and even bold billionaire has managed to achieve incredible success and ensure enormous profits. Today Mr. Buffett is an owner of the conglomerate, Berkshire Hathaway, and investor in the Bank of America. His courageous financial decisions compel other investors to admire and learn a lot, for being able to reach at least the slightest success.

In 2008, during a financial panic, Warren Buffett invested five billion dollars in Goldman Sachs and about three billion in General Electrics. Despite the fact that in a period of crisis businessmen had lost a significant sum of capital, anyway, Mr. Buffett did not stop investing money in companies that suffered difficult times. Hence, in August 2011 there was an investment in Bank of America that got into rather a problematic situation with its financial performance. According to Jackson (2011), due to the latest investment Berkshire Hathaway will be getting $9.51 each second along with ten-year warrants (Jackson, 2011). It is obvious that such a deal is a profitable contract that will manage to bring its owner big finances in return. However, in spite of personal interest, Warren Buffet plays the role of rescuer for the companies, which suffer a shortage of financial resources. He does not only earn but also provides huge assistance and support to the different structures and enterprises.

Mr. Buffett is one of the not many people, who try to act ethically right and treat others fairly. Hence, because of his several statements concerning the comparison between his portion of taxes and payments of average employee in his office, the president Obama has legitimated the proposition to provide special tax rate for those people, whose income exceeds one million dollars, so that ensures justice and equality in rights due to belonging to different social layers (Jackson, 2011). Any other billionaire could keep silence about the disproportionate system of taxation, which was advantageous for him, but not only Warren Buffett. On the contrary, this person is eager to help first of all and benefit the community. Being a good example of philanthropist, he even encourages other rich people to donate part of their profits to various social programs and educational establishments.

Warren Buffett proves the significance of long-term investing. The main strategy of this admirable investor is the purchase of underestimated companies. Mr. Buffett teaches young businessmen how to be not obsessed only with money return, because how he often shows the financial result does not play a major role for him. The most interesting thing for Warren is the process of stock market game. Mr. Buffett meticulously calculates and appraises each figure, effectively motivates employees, boldly makes decisions, easily parting with money that has a strong tendency to return to him.

Despite deep knowledge of economics and stock markets, Warren Buffett managed to achieve success with the help of his interpersonal skills. He always displays honesty and decency in business relations, confidently goes right to his goal and urgently believes in own strength. Mr. Buffet has never been embarrassed to accept own mistakes and constantly tries to keep reticence and calmness in the most crisis situations on the stock market. He represents a role-model for investors and businessmen, who should develop mentioned Warren’s positive traits in themselves and imitate his intentions to support the community. It is likely that exactly with the help of their own perception, attitude and views Warren E. Buffett has managed to become one of the most popular and loved a rich man in the world.