Buffet’s First Empire: Investing as a Young Boy

Here’s a simple anecdote about Howard Buffett and Warren Buffett that can encourage parents to teach their kids about investing:

When Warren Buffett was just a boy, his father, Howard Buffett, gave him a book about investing. Warren was immediately fascinated by the subject and started to devour more books on the topic. Howard recognized his son’s interest and encouraged him to invest his money, starting with small amounts.

One day, Warren spotted a pinball machine in a local drugstore and realized it was a great opportunity to invest. He put in a few coins, played a game, and won a few more coins. He kept playing and winning until he had accumulated $35. Warren then made an offer to buy the pinball machine for $1,200, using the $35 as a down payment and borrowed the rest from his father.

The pinball machine turned out to be a great investment, and Warren made enough money to pay off the loan and earn a profit. This early success fueled his passion for investing, and he continued to learn and invest throughout his life, eventually becoming one of the most successful investors in history.

The story of Warren Buffett and the pinball machine is a great example of how parents can encourage their children to learn about investing and take smart risks with their money. By providing resources and guidance, parents can help their children develop a lifelong passion for investing and financial responsibility.