Warren Buffett is an American business magnate with a net worth of $116.4 billion. Known as the Oracle of Omaha, Buffett is regarded as the most successful investor in the 20th and 21st centuries.
The Self-Made Billionaire Warren Buffett maintains that money cannot buy happiness. He has donated billions to various courses using his charity organization, the Buffet Foundation.
Are you eager to learn how Warren Buffett built his massive wealth to become the fifth-richest person in the world?
Early Life and Education
Warren Buffett was born in Omaha, Nebraska, on August 30, 1930. He was the third child and only son of Howard Buffett and Leila Buffett. His father was a politician and businessman. He served four terms as the United States representative for Nebraska. He was also a renowned philanthropist who believed in giving back to society.
Warren Buffett’s interest in building wealth started in childhood. He sold soft drinks to make money. At 14, he purchased a 40-acre land and rented it to make a profit.
Warren Buffett attended Rose Hill Elementary School. The family moved to Washington, D.C., when his father became a Congressman. Buffett joined Alice Deal Junior High School and attended Woodrow Wilson High School. He graduated in 1947.
After high school, Buffett wanted to go straight to business. But his father advised against it and pushed him to join the University of Pennsylvania. He left the university after two years and enrolled at the University of Nebraska.
Buffett enrolled at Columbia University, where his journey to his 11-figure fortune began. In Colombia, Buffett studied under Benjamin Graham, the famous “father of value investing.” After graduation, Graham refused to hire Buffett, saying he had no future on Wall Street. Buffett returned to Omaha and worked at his father’s brokerage business.
Warren Buffett married Susan Thompson in 1952. The couple had three children, Susan Alice Buffett, Howard Graham Buffett, and Peter Andrew Buffett. Susan Thompson died of cancer in 2004, and Buffett remarried in 2006.
Buffett and his second wife, Astrid Menks, were longtime companions. They started seeing each other in 1978. They wedded in 2006 in Warren Buffett’s daughter’s home in Omaha.
Warren Buffett had several affairs during his marriage to Susan Thompson. He reportedly had a flirtatious relationship with the late Katherine Graham. This was after Berkshire Hathaway bought shares in her company, the Washington Post.
Net Worth Over the Years By Age
Though he was born into a stable family, Warren Buffett had to work his way up to become the fifth-richest person in the world. His father was not very supportive of his enormous dreams. He even supported the idea that Buffett did not stand a chance on Wall Street.
Throughout his life, Buffett has earned above median household income. He filed his first federal tax returns in 1944, at 14. The IRS required all American citizens with an annual income of $500 to file their tax returns. Young Buffett had made $592.50 that year.
The legendary investor did not become a billionaire until after his 50th birthday.
|In his 20s||$140,000|
|In his 30s||$25 million|
|In his 40s||$67 million|
|In his 50s||$3.8 billion|
|In his 60s||$16.5 billion|
|In his 70s||$35.7 billion|
|In his 80s and 90s||$116.4 billion as of July 2023|
How Does Warren Buffett Invest?
Warren Buffett started his journey to massive wealth with only $9,800. He has built his massive net worth from his investment prowess. The billionaire philanthropist takes advantage of every investment opportunity. Buffett pumps millions of dollars into opportunities that show potential long-term growth.
So, how does Warren Buffet invest?
Buffett is an elite investor who learned from the best investors. He studied under Benjamin Graham and worked in his father’s brokerage firm. His investment portfolio spans from real estate to startup companies.
Buffett’s bold investment decisions have played a huge role in the growth rate of his huge fortune. His investment portfolio includes the stock market, real estate, and startups.
Buy and hold is his common, long-term investment strategy. The CEO of Berkshire Hathaway Inc. buys strong businesses that show growth potential and holds them for the longest time. He says his favorite holding period is forever, and he does not mind when stocks tumble occasionally. He treats such as investment opportunities to buy more shares.
Despite having a disciplined investment philosophy, Buffet is an active stock trader. He buys and sells stocks using his investment firm, Berkshire Hathaway Inc. The giant investment firm is headquartered in Omaha, Nebraska. It was established in the 1800s as a textile business. It has become a holding company comprising various firms in different industries.
Businesses under Berkshire Hathaway include GEICO. GEICO is one of the biggest insurance companies in the United States.
During the first quarter of the year, Berkshire sold shares worth $13.2 billion and bought only $2.8 billion. In line with his contrarian investing, Buffet bought 333,856 Apple shares in the final quarter of 2022.
Apple Inc. is the Largest Holding company in Berkshire Hathaway by market value. Besides Apple, Berkshire Hathaway bought shares in Louisiana Pacific and Paramount Global. While making these share purchases, Buffet reduced his stakes at Taiwan Semiconductor.
While making these recent buys, Berkshire maintained their longest-holding stocks. The company has held stock in holding companies such as the Bank of America, Coca-Cola, and American Express since 2001 Q1.
Take a Look at This Is How Warren Buffett Made $85 Billion:
Real estate has played a huge role in Warren Buffet’s massive wealth. He has invested in real estate since the 1990s. According to Forbes, Buffett’s real estate investment is worth $12.7 billion as of 2018. One of his most successful investments in the industry is a house he acquired for $150,000 in 1971 in California. Its current value is $11 million.
Buffett is famous for making bold investments and holding them for the longest time. This approach to investing has been one of Buffett’s success secrets since the beginning. He buys early-stage ventures that show potential for growth and holds for the longest time.
Recently, the American business magnate has turned to financial technology companies. One of the startups that caught the eye of Warren Buffet is Brazil’s Nubank. Buffett gave a fat cheque of $500 million to this fast-growing FinTech that is trending in the Latin American market. This investment placed Nubank on the same level as major fintech companies such as Lufax.
Other notable FinTech companies that Warren Buffet has bankrolled include Brazil’s StoneCo Ltd. His $143 million investment in this company made it the 39th largest holding in the Berkshire Hathaway.
Despite his billionaire status, Warren Buffett is a frugal person. He does not own luxury cars or a yacht. Buffett used his 2006 Cadillac DTS for eight years before upgrading to the 2014 XTS.
The investing legend also invests in the automobile industry. He has a 53-million stake in GM, Caddilac’s parent company. Though he prefers investing in American motor makers, he also holds shares in a Chinese electric vehicle manufacturer, BYD.
Planes and Aviation
While Warren Buffet does not own expensive luxury vehicles or yachts, he has the largest fleet of private jets. He bought his first used jet, which he upgraded with a brand new one in 1989. He added Executive Jets Asia (EJA) and NetJets to his fleet in 1998. The three purchases cost $850,000, $6.7 million, and $725 million, respectively.
Warren Buffett has always criticized CEOs who own private jets. Buffett said his planes are essential business tools to defend his expensive fleet of jets.
Warren Buffet holds stocks in various aviation companies. These companies include Delta Air Lines, American Airlines, United Airlines, and Southwest Airlines. In 2020, Buffet said he had invested at least $7 billion in these aviation companies.
These investments show Buffett believes in the aviation industry’s long-term growth potential.
Gold and Silver
While many affluent people love to invest in precious metals, Buffett is different. The man believes in value investing. He does not invest in gold, yet he has over $1 billion in silver.
While many think he hates gold, it simply comes down to value. Warren Buffett believes that gold has nothing to offer beyond its rarity. Silver is applicable in various industries, making it a worthwhile investment than gold.
Warren Buffett plans on giving all his fortune to charity. Buffet issued lifetime pledge letters in 2006, committing to give Berkshire B shares to the Bill & Melinda Gates Foundation. In the following years, the self-made billionaire Warren Buffett has given billions of dollars to charity.
Does Warren Buffett Own a Jet?
Warren Buffett owns the largest fleet of private jets. To defend his philosophy of simple living, the billionaire investor calls his jets necessary business tools.
Is Warren Buffett Self-made?
Warren Buffett is a self-made billionaire who claims his great success is thanks to one simple rule; living a good life. Buffet told a group of high school students during his 2017 documentary, Becoming Warren Buffett, that becoming a good person means you will also become successful.
What is Warren Buffett’s Famous Quote?
One classic Warren Buffett quote about investment is, “The first rule of investment is don’t lose. And the second rule of an investment is don’t forget the first rule. And that’s all the rules there are.”
Warren Buffett has built immense wealth over the years. He is famous for his astute investments and unlimited giving. His pledge letters show that he is not stopping in his line of charity giving. The self-made billionaire has amassed his massive net worth by relying on the simple rule of value investing.