Warren Buffet is an American business magnate, investor and philanthropist who has a net worth of $64 billion. He is a regular on the top 5 list of the richest people in the world which commonly includes the likes of Bill Gates and Amancio Ortega. He would have a net worth of $102 billion if he was not extremely charitable. Let us delve more into how the Oracle of Omaha has managed to amass all this wealth:
Warren Buffett Net Worth: Investments
Buffet is the CEO of Berkshire Hathaway Inc., the 4th most valuable company in the U.S. It is the fifth publicly traded company worldwide. In the last 5 decades, it has grown from a textile firm into a company with a market capitalization of $300 billion. There were 47 equity holdings valued at around $109 billion. 60% are concentrated on the ‘big four’: Wells Fargo (23.2%), Coca-Cola (15.4%), American Express (12.9%), and IBM (11.3%)
Some of his latest deals include $37 billion invested in Precision Castparts, which makes aerospace and industrial parts. He has also invested in 3G Capital, which is a firm run by a number of billionaires in Brazil. He is involved in deals for Heinz, Tim Hortons, Kraft Foods, and Burger King.
Buffet has a knack for investing in products that he likes to use. For instance; Because he liked Fruit of the Loom’s shirts and underwear, he invested in the company. He recently invested in Trands Co., a Chinese firm because he loved a specific brand of suits.
Buffet also has investments in renewable energy. He has invested $15 billion in solar and wind energy.
His net worth got to $1 million when he was 30, something that he had predicted. It got to $1 billion when he was 56. He made $12.7 billion in 2013, which is an average of $37 million a day, and $1.5 million an hour. Buffet is a long-term investor, making $62.7 billion after he turned 50, and $60 billion after turning 60.
Warren Buffett Net Worth: Business beginnings
Buffett’s interest in business and investment began when he was very young. He began by selling Coca-Cola bottles, chewing gum, and weekly magazines door to door. He worked at his grandfather’s grocery store.
He delivered newspapers, sold stamps and golf balls and detailed cars as well. When paying tax in 1944, he used $35 to buy a bicycle and watch to use in his deliveries. The following year, he spent $25 to buy a pinball machine. They placed it in a barber shop. In a few months, they had a number of machines in a number of barber shops across Omaha. They sold the business for $1200.
Buffet’s interest in the stock market was a result of spending time in a lounge of a regional stock brokerage which was near his father’s brokerage office. In 1941, he bought 3 shares for himself and 3 for his sister. Each piece was preferred at $38. The stock dropped by almost 30%. It did later rise to $40. Buffet sold here, and it soared to $200 in a few months. He bought a 40 acre farm at age 14. He had $90,000 in savings by the time he finished high school.
Warren Buffett pledged to give 99% of his net worth to charity, with 83% going to the Bill and Melinda Gates Foundation. This is roughly $41 billion, making it the largest amount of money given to charity in human history.
He gave $2.8 billion to 5 different charitable organizations:
– The Susan Thompson Buffett Foundation
– The Howard G. Buffett Foundation
– Bill and Melinda Gates Foundation
– The Sherwood Foundation
– The NoVo Foundation
The money is to be spent on day-to-day operations, and is not to be tucked away in endowments.
The money was in form of class ‘B’ shares in Berkshire Hathaway Company. This was part of the ‘Giving Pledge’ campaign where Buffet is set to give at least half of his net worth to charity before he dies. He is also on a campaign to get other billionaires to sign the pledge. Bill Gates and Amancio Ortega have already signed up.
Buffet is Hillary Clinton’s biggest proponent. He has even donated to her campaign.
Interestingly, Buffet still lives in the same home that he bought in 1958. It was worth $31,500. It may even be more fascinating to know that despite having a fortune of 11 figures, he only earns $100,000 annually from Berkshire which he spends frugally.
It has not been pure bliss for the Oracle of Omaha. In the mid-70s, Berkshire Hathaway experienced decreasing share price. Warren Buffett’s net worth decreased to $44 million.
The Oracle of Omaha is undoubtedly a force to reckon with. He is among the richest people in the world, yet is characterized by frugality and charity. He is not done investing yet.