Story of Buffett

Warren Buffett's life can be seen as a continuous process of elevation, moving from the early pursuit of pure profit, to mid-career value investing, and ultimately to his philanthropic efforts of donating 99% of his wealth, reflecting a gradual evolution in his values and life pursuits.

1. **Beginning with "cigar-butt" profit-seeking**: In his early years, Buffett followed the “cigar-butt” strategy, which involved finding companies that were severely undervalued or near collapse, extracting the last bit of value from them like taking the last puff from a discarded cigarette. This strategy was effective for short-term gains but reflected his early, singular focus on accumulating wealth.

2. **Progressing to value investing**: As Buffett matured in experience and wisdom, he shifted to **value investing**. Instead of chasing bargains, he began seeking companies with long-term growth potential, focusing more on a company’s intrinsic value rather than short-term market fluctuations. In this phase, Buffett emphasized investing in businesses, not just stocks, advocating the philosophy of “buying the whole business,” representing a more sophisticated and rational investment approach.

3. **Concluding with giving back to society**: In the later stages of his life, Buffett pledged to donate 99% of his wealth to charitable causes, which represents the highest manifestation of his life’s purpose. He recognized that the ultimate meaning of wealth lies not in its accumulation or enjoyment, but in how it can be used to give back to society and help others. This is a leap from personal success to social responsibility, showcasing his understanding of a broader human purpose.

These three stages reflect Buffett’s growth as both an investment master and a social leader: from pursuing profit to seeking value, and ultimately embracing responsibility. It’s not just a progression in wealth management but an elevation of life wisdom, transcending material boundaries and culminating in giving back to society as a final act of legacy.