Many entrepreneurs strive to one day add “millionaire,” or even “billionaire,” to their list of achievements. It’s become an industry-wide sign showing they’ve finally made it in business. But billionaire investing mogul Warren Buffett hit back at the notion that eye-watering net worths equate to excellence.
TL;DR
- Warren Buffett believes greatness isn't about accumulating wealth or power.
- He lives frugally, still residing in his $31,500 Nebraska home.
- Buffett values compassion and kindness over financial success.
- He frequently eats at McDonald's and uses coupons, even with Bill Gates.
“Greatness does not come about through accumulating great amounts of money, great amounts of publicity or great power in government,” Buffett wrote in his final Berkshire Hathaway shareholder letter published this Monday.
The 95-year-old “Oracle of Ohama,”, recognized as one of history's most accomplished investors, ranks as the world's 11th wealthiest individual, possessing a fortune of $150 billion. However, this wealth hasn't translated into extravagant spending on residences or new luxury vehicles. He's maintained a frugal approach over his seventy-year career, even as his net worth has grown by billions.
Despite his wealth, Buffett maintains his simple lifestyle, characterized by Frequenting McDonald's, driving an aging vehicle, and residing in his humble Nebraska dwelling. Rather than seeking empowerment through extravagant spending, Buffett discovers genuine fulfillment and significance in non-monetary endeavors.
“When you help someone in any of thousands of ways, you help the world,” Buffett continued. “Kindness is costless but also priceless. Whether you are religious or not, it’s hard to beat The Golden Rule as a guide to behavior…Keep in mind that the cleaning lady is as much a human being as the Chairman.”
Warren Buffett's frugal habits include using McDonald's coupons and residing in a home valued at $31,500.
The core principle Buffett lives by is extending kindness and respect to all individuals, irrespective of whether they've founded a successful startup or are entry-level employees. He applies this same approach to interactions with influential business figures, eschewing extravagant dining to impress them.
The Berkshire Hathaway icon is recognized for Frequenting McDonald's for affordable meals, opting for two sausage patties, an egg and cheese, or a bacon egg and cheese, all costing under $4. His fondness for the fast-food establishment is so great that he once took Bill Gates there for a meal years ago, foregoing a fancy dining experience. On one occasion, the business partners were at a McDonald's in Hong Kong, and Gates recalled laughing when Buffett offered to pay the small sum, producing coupons from his pocket. However, for the hedge-fund magnate, every cent is significant.
The same money philosophy applies to Buffett’s major life purchases. The long-time CEO still lives in the same five bedroom, two-and-a-half bathroom Omaha home he bought for $31,500 back in 1958. The house would be worth around $1.3 million today—far more affordable than the luxurious pads Buffett can afford—yet he says he “wouldn’t trade it for anything.” Buffett’s true fondness for the home lies in the memories of raising his three kids on the property, not its market value.
Individuals with immense wealth, similar to Buffett, might be inclined to splurge on luxuries such as high-end automobiles. However, the renowned investor has no desire to drive a Lamborghini or Aston Martin; he previously used a two-decade-old vehicle, believing it offered greater safety than a fast, opulent option. At one time, his license plate even displayed “THRIFTY.”.
Buffett avoids significant spending on luxury items like mansions or sports cars, believing indulgence might actually hinder his contentment.
“I do not think that standard of living equates with cost of living beyond a certain point,” Buffett said at a Berkshire Hathaway shareholders meeting in 2014. “My life would not be happier…it’d be worse if I had six or eight houses or a whole bunch of different things I could have. It just doesn’t correlate.”