Warren Buffett Net Worth

What is Warren Buffett's Net Worth?

Warren Buffett, an American investor and philanthropist, has an impressive net worth of $138 billion. Widely regarded as the greatest investor of the 20th century, Warren's fortune largely stems from his ownership stake in Berkshire Hathaway. If you had invested $1,000 in Berkshire Hathaway in 1965, your shares would be worth over $25 million today.

Buffett controls around 31% of the company's voting interest and holds 15.6% of its equity. Besides Berkshire, he owns 1% of US Bancorp. Remarkably, about 99% of his substantial wealth was amassed after he turned 50.

A significant portion of Buffett's wealth is committed to philanthropy. He has pledged to give away 99% of his fortune to charity before passing. A large portion of it is dedicated to the Bill & Melinda Gates Foundation. Together with Bill Gates, Warren co-founded The Giving Pledge, encouraging billionaires to donate at least 50% of their wealth to charitable causes within their lifetimes.

Early Life

Born on August 30, 1930, in Omaha, Nebraska, Warren is the only son of Leila and Congressman Howard Buffett. He exhibited an interest in business and investing at an early age. Inspired by a book titled "One Thousand Ways to Make $1000," he bought his first stock at 11 and later pooled his earnings from a paper route to buy Oklahoma farmland.

Buffett's entrepreneurial spirit led him to various ventures, including a successful pinball machine business by high school. When his father was elected to Congress in 1942, the family moved to Washington, D.C., where Warren attended Alice Deal Junior High School and graduated from Woodrow Wilson High School in 1947. His yearbook caption prophetically read: "likes math; a future stockbroker."

Education and Early Career

In 1947, Buffett entered the Wharton School at the University of Pennsylvania, joining the Alpha Sigma Phi fraternity. He transferred to the University of Nebraska to earn his bachelor's degree in business administration by age 19. Seeking further education, Warren enrolled at Columbia Business School to study under his idols Benjamin Graham and David Dodd, achieving a Master's in Economics in 1951.

Buffett Partnership Ltd

Graduating from Columbia, Buffett joined his family's firm, Buffett-Falk & Co., as an investment salesman, also teaching at the University of Nebraska-Omaha. His keen business insight drew the attention of Benjamin Graham, leading Buffett to a securities analyst role at Graham-Newman Corp with a starting salary of $12,000.

Learning from Graham, Buffett eventually realized he had a higher risk tolerance for investments. Using his savings of nearly $174,000, Warren established Buffett Partnership Ltd, rapidly expanding from three to six partnerships, reaching millionaire status by 1962.

Investing in GEICO

In April 1952, Buffett made a strategic investment in the Government Employees Insurance Company (GEICO), now wholly owned by Berkshire Hathaway. Applying his analysis, Warren confidently predicted the insurance company's growth, acquiring it substantially, which became a cornerstone of his investment success.

Berkshire Hathaway

Buffett's reputation as a financial wizard was public by the 1960s. Buying shares in Berkshire Hathaway for $7.60 each in 1962 and aggressively at $14.86 in 1965, Buffett gained control, becoming Chairman and CEO by 1970. Through smart investments and restructuring, he grew Berkshire Hathaway into a financial empire, earning the nickname "Oracle of Omaha."

By the early '80s, Buffett's net worth had reached $620 million (around $2 billion today). By 1990, he was a billionaire, with each Berkshire share worth $7,175. Warren is noted for investing in products he uses, such as Fruit of the Loom.

Personal Life

Warren Buffett married Susan Thompson in 1952. They had three children. Though they started living separately in 1977, they remained married until Susan's passing in 2004. On his 76th birthday, he married Astrid Menks, who had been his companion since the 1970s.

An ardent fan of Nebraska football, Buffett prioritizes attending games. Technologically minimalist, Warren uses a flip phone, has sent only one email (to Microsoft's Jeff Raikes), and avoids a computer on his desk. His diet is also famously unconventional, including a high intake of Coca-Cola and ice cream for breakfast.

In 2010, Buffett co-founded The Giving Pledge with Bill and Melinda Gates, encouraging the wealthy to donate a significant portion of their fortunes to charitable endeavors. As of 2023, Buffett has donated over $50 billion to various causes.

Wealth Details & History

Warren's wealth is primarily from his 18% stake in Berkshire Hathaway, which grew nearly 20.8% annually from 1965 to 2016. His portfolio includes significant holdings in Wells Fargo, U.S. Bancorp, IBM, and others. Notably, his Berkshire shares account for over 98% of his net worth, with regular philanthropic contributions.

Starting with $20,000 at age 21, Buffett amassed his first million by age 30 and continued to grow exponentially, reaching billionaire status by age 56. By 2016, his wealth soared to over $70 billion.

Real Estate

In 1958, Warren and Susan Buffett purchased a modest five-bedroom house in Omaha for $31,500 (about $330,000 today). Warren continues to reside in this house, now valued at around $1.2 million.