WARREN BUFFETT’S NET WORTH OVER THE YEARS

WARREN BUFFETT’S NET WORTH OVER THE YEARS by Vintage Value Investing

Get The Full Warren Buffett Series in PDF

Get the entire 10-part series on Warren Buffett in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Warren Buffett always had big ambitions.

His goal as a kid was to become a millionaire by the time he was 30. And he did it.

But he hasn’t always been the 2nd richest man in the U.S. (and the 3rd richest in the world). Warren Buffett didn’t even become a billionaire until he was 50 years old. In fact, 99% of Warren Buffett’s net worth was earned after his 50th birthday.

[drizzle]

How much does he have today?

According to Forbes, Warren Buffett’s net worth in 2015: Over $66.7 billion.

Warren Buffett's Net Worth Over Time

The timeline below was put together by GoBankingRates.com.

WARREN BUFFETT’S 20S: THE FIRST $100,000

After graduating college, Buffett worked for his father’s brokerage firm as a stockbroker. When Buffett was 21, his net worth was shy of $20,000, reports Dividend.com.

At age 24, Buffett was offered a job by his mentor, Benjamin Graham, with an annual salary of $12,000. According to U.S. Census Bureau data, this was already about three times the annual median income for the average family in 1954 — proof that Buffett was well on his way to fortune. By the time Buffett reached 26, his net worth was $140,000.

WARREN BUFFETT’S 30S: MILLIONAIRE STATUS

When he reached 30 years of age, Buffett’s net worth was $1 million. In 1960, the average family income in the U.S. was $5,600 per year. Compared with Buffett’s $1 million net worth at the time, men who were working full time only made $5,400.

By age 35, according to Dividend, Buffett’s partnerships had grown to $26 million. Buffett bought controlling stock in Berkshire Hathaway in 1965, according to CNN, and by 1968 his partnerships grew to $104 million. Going into his forties at age 39, Buffett’s net worth was listed at $25 million.

Read: What Exactly is Berkshire Hathaway

WARREN BUFFETT’S 40S: BOUNCES BACK FROM FINANCIAL TROUBLES

By age 43, Buffett’s personal net worth was at a high of $34 million. He used some of this capital the year prior to purchase See’s Candies for $25 million, reports The Motley Fool, and it became an investment that’s still profitable in 2015. But, the mid-1970s proved to be a rough period for Berkshire. By 1974, its decreasing share price lowered Buffett’s net worth to $19 million when he reached 44, reports Dividend.

Never one to let his savvy investment skills fall by the wayside, Buffett was able to recover financially. By the end of the decade, he had increased his net worth to $67 million at age 47. By the close of the 1970s, the median U.S. household income was $16,530.

Read: 7 Investing Mistakes Warren Buffett Regrets

WARREN BUFFETT’S 50S: BECOMING A BILLIONAIRE

Buffett’s net worth in 1982 was $376 million and increased to $620 million in 1983, according to Dividend. In 1986, at 56 years old, Buffett became a billionaire — all while earning a humble $50,000 salary from Berkshire Hathaway.

Meanwhile, the average American family in 1986 was making nearly half of what the Oracle of Omaha was earning in salary; the median household income in 1986 was $24,900. As Buffett neared 60 years old, he was worth $3.8 billion.

WARREN BUFFETT’S 60S: BERKSHIRE STOCK AND WARREN BUFFETT NET WORTH GROW

In a letter to Berkshire Hathaway shareholders in 1990, Buffett wrote that he thought the company’s net worth would decrease during this decade, and the second half of 1990 supported that. But late in the year, the company was able to close with a net worth of up to $362 million. As he entered further into his sixties, Buffet’s personal net worth grew as well — to $16.5 billion by the time he was 66 years old, states Dividend.

The average American family began to creep up to Buffett in earning power during the 1990s. According to Census data, the median household income by the end of the decade was close to $42,000.

WARREN BUFFETT’S 70S: PHILANTHROPY AND GROWTH

Within six years — from age 66 to 72 — Buffett’s net worth more than doubled. His net worth at 72 years old was listed at a whopping $35.7 billion. But, Buffett is about sharing the wealth. In 2006, he released pledge letters that stated he will donate 85 percent of his wealth to five foundations over time, reports CNN.

The median household income in 2000 was $42,148.

Read: 9 Things Warren Buffett Says You Should Do to Be Happy and Successful

WARREN BUFFETT’S 80S: THE SKY’S THE LIMIT

As of mid-August 2015, Buffett’s net worth is $67 billion, making him one of the richest billionaires in the world, behind Bill Gates and Carlos Slim Helu. At 84, Buffett shows no signs of stopping anytime soon. And while he might have an 11-figure fortune, Buffett reportedly earns only $100,000 a year at Berkshire Hathaway and spends it frugally.

Still, the master investor is making much more than the average American. According to the most recent Census Bureau data, the median household income in the U.S. is $51,939.

[/drizzle]




About the Author

VintageValueinvesting
Ben Graham, the father of value investing, wasn’t born in this century. Nor was he born in the last century. Benjamin Graham – born Benjamin Grossbaum – was born in London, England in 1894. He published the value investing bible Security Analysis in 1934, which was followed by the value investing New Testament The Intelligent Investor in 1949. Warren Buffett, the value investing messiah and Graham’s most famous and successful disciple, was born in 1930 and attended Graham’s classes at Columbia in 1950-51. And the not-so-prodigal son Charlie Munger even has Warren beat by six years – he was born in 1924. I’m not trying to give a history lesson here, but I find these dates very interesting. Value investing is an old strategy. It’s been around for a long time, long before the Capital Asset Pricing Model, long before the Black-Scholes Model, long before CLO’s, long before the founders of today’s hottest high-tech IPOs were even born. And yet people have very short term memories. Once a bull market gets some legs in it, the quest to get “the most money as quickly as possible” causes prices to get bid up. Human nature kicks in and dollar signs start appearing in people’s eyes. New methodologies are touted and fundamental principles are left in the rear view mirror. “Today is always the dawning of a new age. Things are different than they were yesterday. The world is changing and we must adapt.” Yes, all very true statements but the new and “fool-proof” methods and strategies and overleveraging and excess risk-taking only work when the economic environmental conditions allow them to work. Using the latest “fool-proof” investment strategy is like running around a thunderstorm with a lightning rod in your hand: if you’re unharmed after a while then it might seem like you’ve developed a method to avoid getting struck by lightning – but sooner or later you will get hit. And yet value investors are for the most part immune to the thunder and lightning. This isn’t at all to say that value investors never lose money, go bust, or suffer during recessions. However, by sticking to fundamentals and avoiding excessive risk-taking (i.e. dumb decisions), the collective value investor class seems to have much fewer examples of the spectacular crash-and-burn cases that often are found with investors’ who employ different strategies. As a result, value investors have historically outperformed other types of investors over the long term. And there is plenty of empirical evidence to back this up. Check this and this and this and this out. In fact, since 1926 value stocks have outperformed growth stocks by an average of four percentage points annually, according to the authoritative index compiled by finance professors Eugene Fama of the University of Chicago and Kenneth French of Dartmouth College. So, the value investing philosophy has endured for over 80 years and is the most consistently successful strategy that can be applied. And while hot stocks, over-leveraged portfolios, and the newest complicated financial strategies will come and go, making many wishful investors rich very quick and poor even quicker, value investing will quietly continue to help its adherents fatten their wallets. It will always endure and will always remain classically in fashion. In other words, value investing is vintage. Which explains half of this website’s name. As for the value part? The intention of this site is to explain, discuss, ask, learn, teach, and debate those topics and questions that I’ve always been most interested in, and hopefully that you’re most curious about, too. This includes: What is value investing? Value investing strategies Stock picks Company reviews Basic financial concepts Investor profiles Investment ideas Current events Economics Behavioral finance And, ultimately, ways to become a better investor I want to note the importance of the way I use value here. It’s not the simplistic definition of “low P/E” stocks that some financial services lazily use to classify investors, which the word “value” has recently morphed into meaning. To me, value investing equates to the term “Intelligent Investing,” as described by Ben Graham. Intelligent investing involves analyzing a company’s fundamentals and can be characterized by an intense focus on a stock’s price, it’s intrinsic value, and the very important ratio between the two. This is value investing as the term was originally meant to be used decades ago, and is the only way it should be used today. So without much further ado, it’s my very good honor to meet you and you may call me…