Published By: Sayan Paul

Warren Buffett Turns 94: Did You Know The 'Oracle Of Omaha' Was Rejected By Harvard Business School?

As of June 2024, Warren Buffett had a net worth of $135 billion, making him the tenth-richest person in the world.

"You only get one mind and one body. And it's got to last a lifetime." - Warren Buffett

The rarest of human qualities are patience and consistency. This is where most investors across the world fail - we are so much into quick wins that we barely succeed in the long run. Well, what sets Warren Buffett apart is his clarity, patience, and simplicity. While others may be going crazy regarding the latest market trends, he has the ability to stay calm and do the simplest of things. And he does it so strategically (thanks to his deep understanding of businesses) that it becomes a guide for everyone else.

Warren Buffett is a legendary investor and businessman who currently serves as the chairman and CEO of Berkshire Hathaway. He is celebrated (not just in the US but also worldwide) for his principles of value investing, and his strategies for wealth creation. And with a massive fortune to his name, he has been referred to as the "Oracle" or "Sage" of Omaha by global media.

(Credit: Intrinsic Compounding)

It's Buffett's 94th birthday today. On this occasion, we share an interesting fact about him that you probably didn't know.

Warren Buffett Was Rejected By Harvard Business School

It is hard to believe, I agree, but Buffett was indeed rejected by Harvard Business School.

After graduating from the University of Nebraska, he applied to Harvard Business School and went to Chicago where he would have his entrance interview. He was pretty sure that he would be selected, however, destiny had a different plan for him.

The legendary investor later recalled in HBO’s show, 'Becoming Warren Buffett', "They told me I was to get interviewed in a place near Chicago. I got there and they interviewed me for about 10 minutes and said: ‘Forget it. You’re not going to Harvard.’”

"I looked about 16 and emotionally was about nine. I spent 10 minutes with the Harvard alumnus who was doing the interview, and he assessed my capabilities and turned me down," he said in another interview.

(Credit: Brian Feroldi)

Buffett’s first thought was, “What do I tell my dad? This is terrible.” But, he said, “it turned out to be the best thing that ever happened to me.”

Turning Failure Into Opportunity

Buffett knew what he was worth, so, didn't let that rejection interfere with his dreams. He soon found a catalog for Columbia Business School, where he found the names of two professors: Benjamin Graham (regarded as the father of value investing) and David Dodd.

“I had read this book [“Security Analysis”] by the two of them, so I wrote them a letter in mid-August,” Buffett recalled. “I said, ‘Dear Professor Dodd. I thought you guys were dead, but now that I found out that you’re alive and teaching at Columbia, I would really like to come.’"

(Credit: Kurtis Hanni)

He was eventually selected at Columbia. And that opened the door to a whole new world for him. It was Graham who taught him “the two rules of investing” that Buffett has followed his whole career: "Rule number one: Never lose money. Rule number two: Never forget rule number one.”

In several of his interviews, Warren Buffett has said that Harvard's rejection was the best thing that happened to him. In his words, "Don't fear failure. I got turned down by Harvard. It was the best thing that ever happened. There are some good things that happened that didn't seem good at the time."