STARTING A COMPANY
After he earned enough money working for other people's companies, Buffett began his own.
His first was Buffett's Used Golf Balls. He bought refurbished balls from a man in Chicago at $3.50 a dozen and turned them around for $6.
"He probably got them the way we first tried to get them, out of water traps, only he was better," Buffett tells Schroeder.
SCAVENGING 'LOSING' TICKETS AT THE TRACK
While Buffett was still a kid in Omaha, a friend's mother introduced him to betting at Ak-Sar-Ben, a local horse track. While he was too young to gamble, he wasn't too young to make money on what other people carelessly threw away.
"They call that 'stooping,'" Buffett explains, noting that novices were placing bets at the beginning of racing season. "And they'd think that if your horse came in second or third, you didn't get paid, because all the emphasis is on the winner, so they'd throw away place and show tickets."
He and his friend scoured the stands for discarded tickets amidst the cigarette butts, spilled beer and food scraps.
"It was awful; people would spit on the floor. But we had great fun. If I found any winning tickets, my Aunt Alice would cash them in for us, because they wouldn't cash them for kids."
Eventually, he got his high school golf coach to drive him to some local races where he'd make bets after analyzing race statistics. Once he went alone and bet every race only to continue losing as his emotions got the best of him.
"I'd committed the worst sin, which is that you get behind and think you've got to break even that day," Buffett tells Schroeder. "It was the last time I ever did anything like that."