Warren Buffett and the Secret Millionaire's Club
Legendary investor Warren Buffett was born on August 30th, 1930, in Omaha, Nebraska. He is the second richest person in the world, just behind his friend Bill Gates, and he filed his first income tax return at the age of 13, deducting $35 for his bicycle as a work expense.
He worked a paper round but was not content to work just his own round, he signed up a whole load of new customers for his round and then sub-contracted out the work to other boys.
Already, at the age of 6 he had shown his business acumen when he bought packs of six Coca Cola for 25 cents and resold each bottle for a nickel, bringing in a profit of 20%.
When he was 11 he bought his first shares, - three shares in Cities Service Preferred at $28 each. He held them until they reached $40, selling them for a 50% profit, but this was a mistake as they quickly rose to $200. This taught him a valuable investing lesson - namely, patience is a virtue and the stock market is a means of transferring money from the impatient to the patient and it also convinced him that long-term investing was the way to make money on the stock market.
He has now, at the age of 78, undertaken to take part in a series of cartoons aimed at kids to teach them how to look after their money and how to invest it wisely.
The Secret Milionaire's Club cartoons are being created in a series of webisodes for AOL by 'A Squared Entertainment Inc' a new children's media company. In the series "an animated Warren Buffett is a mentor to a group of kids who have adventures in business and learn financial lessons along the way."
Buffett himself has said : "What better time to help educate our kids about financial responsibility. Andy Heyward and I have a long-standing relationship, and I am excited to introduce a series that is as fun as it is informative."
It was Warren Buffett who came up with the title The Secret Millionaire's Club. Andy Heyward, said : "If you are going to teach somebody, a kid, about financial literacy, who could be better than Warren Buffett?"
The cartoons will be produced by A Squared and extra activities and games will be created by MGX Lab LLC a New York marketing company. The webisodes will also be distributed via the internet and marketed on social networking sites.
The Secret Millionaire's Club cartoons are an excellent idea and the concept was no doubt inspired by the current financial mess (perhaps they will be required viewing for all banking Chief Executives), hopefully they will prove popular and the kids who watch them will acquire a more sensible attitude towards money than their parents. Everybody is affected by money throughout their lives, so no matter what qualifications people end up with at the end of their education they will all need to know how to manage whatever money they earn.
Who then is better qualified than Warren Buffett to offer financial advice? He is a self-made multi-billionaire who made his fortune investing in stocks , who pays himself an annual salary of just $100,000 and who still lives in the house in Omaha that he bought back in 1958 for $31,500. Living proof that you don't need to take ridiculous crazy gambles to make money, but you do need to understand how money is made and conserved.