Warren Buffett, one of the world’s most successful investors, has a net worth of $138 billion. Widely regarded as the greatest investor of the 20th century, his wealth primarily stems from his ownership stake in Berkshire Hathaway. His investment in Berkshire in 1965 would be worth over $25 million today, excluding dividends.
Buffett holds 31% of Berkshire’s voting interest and 15.6% of its equity. He also owns 1% of U.S. Bancorp. His interest in the stock market began early—at age 10, he visited the New York Stock Exchange, and by 11, he had purchased his first stock. Today, Berkshire Hathaway owns hundreds of companies, with a market capitalization nearing $700 billion. Remarkably, nearly all of Buffett’s wealth has been accumulated after age 50.
Buffett has pledged to give away 99% of his fortune, with much of it going to the Bill and Melinda Gates Foundation. He co-founded The Giving Pledge with Bill Gates, which encourages billionaires to commit at least half of their wealth to charity.
Warren Buffett’s Early Life
Born on August 30, 1930, in Omaha, Nebraska, Warren Buffett is the second of three children and the only son of Leila and Congressman Howard Buffett. His interest in business began early, sparked by a book titled One Thousand Ways to Make $1000 that he read at age 7.
At 10, he had lunch with a stockbroker from the New York Stock Exchange, further solidifying his career goal. At 11, Buffett bought his first stock using money earned from a paper route. By his teenage years, he had a profitable pinball machine business, amassing a net worth of $6,000 (about $60,000 today).
In 1942, his family moved to Washington, D.C., after his father was elected to Congress. Buffett graduated from Woodrow Wilson High School in 1947, where his yearbook entry noted, “likes math; a future stockbroker.”
Key Facts
- Bought his first stock at 11.
- Had the equivalent of $60,000 by age 16.
- Lives in the same Omaha house purchased for $31,500 in 1956.
- Reached $1 million net worth by age 30.
- Earned 99% of his wealth after 50.
- Became a billionaire at age 56.
- Only sent one email in his life.
- A $1,000 investment in 1964 would now be worth $25 million.
- Plans to donate the majority of his wealth to charity.
- Drinks five cans of Coca-Cola daily.
Buffett’s Education Journey
Buffett attended the University of Pennsylvania’s Wharton School in 1947 but transferred to the University of Nebraska after two years. He graduated at 19 with a Bachelor of Science in business administration. He later earned a Master of Science in economics from Columbia Business School in 1951, where he studied under his mentor, Benjamin Graham.
Buffett Partnership Ltd and Early Career
After graduation, Buffett worked as an investment salesman for his family’s company, Buffett-Falk & Co., while also teaching an investment course at the University of Nebraska. He briefly purchased a gas station, but it failed. His skills impressed Benjamin Graham, who hired him as a securities analyst at Graham-Newman Corp. Buffett earned $12,000 a year (around $106,000 today).
Buffett soon realized he was more willing to take risks than Graham. When Graham retired, Buffett used $174,000 of his savings (around $1.47 million today) to start his own company, Buffett Partnership Ltd. Within three years, the business expanded, and by 1962, Buffett had become a millionaire.
GEICO Investment and Early Success
In 1952, Buffett invested in a struggling insurance company, the Government Employees Insurance Company (GEICO). Despite the stock being overpriced, Buffett saw growth potential. He invested a large portion of his savings and took control of GEICO. Today, Berkshire Hathaway owns GEICO outright.
Berkshire Hathaway’s Transformation
Buffett began buying shares of Berkshire Hathaway in 1962, purchasing at $7.60 per share. By 1965, he aggressively bought more shares and eventually took control of the company. He became Chairman and CEO in 1970, and under his leadership, Berkshire Hathaway transformed into a giant holding company, acquiring diverse businesses.
Buffett’s knack for identifying undervalued companies earned him the nickname “The Oracle of Omaha.” By the early 1980s, his net worth reached $620 million ($2 billion today). By 1990, he became a billionaire, with Berkshire Hathaway shares valued at $7,175 each.
Personal Life and Habits
Buffett’s personal life is just as fascinating. In 1949, he fell for Susan Thompson, who had a boyfriend with a ukulele. To impress her, Buffett bought his own ukulele and learned to play. They married in 1952 and had three children. In 1977, they began living separately when Susan pursued a singing career, though they remained married until her death in 2004.
In 2006, Buffett married his long-time companion, Astrid Menks, who had lived with him since Susan’s move to San Francisco. The trio maintained a close relationship, often signing holiday cards as “Warren, Susie, and Astrid.” Outside of family life, Buffett is a dedicated University of Nebraska football fan. Despite his immense wealth, Buffett is known for his humble lifestyle. He doesn’t use a computer and prefers a flip phone. He has only sent one email, which was to Microsoft’s Jeff Raikes.
Buffett is infamous for his unhealthy eating habits, drinking at least five cans of Coca-Cola daily, which makes up a large portion of his 2,700 daily calories. He also enjoys ice cream for breakfast. In 2010, Buffett co-founded The Giving Pledge with Bill and Melinda Gates, urging billionaires to donate most of their wealth to charity. By 2023, Buffett had donated over $50 billion to various causes.
Buffett’s Wealth Breakdown and History
Buffett’s fortune is mainly derived from his 18% stake in Berkshire Hathaway. Between 1965 and 2016, Berkshire’s share price grew an average of 20.8% per year. Buffett owns nearly 300,000 Class A shares and 150,000 Class B shares of Berkshire, as well as significant stakes in Wells Fargo, Seritage Growth Properties, U.S. Bancorp, and IBM. His Berkshire Hathaway shares make up more than 98% of his wealth.
Buffett started with $20,000 at age 21 (around $199,175 today). By age 30, he had earned his first million, which would be $8.1 million today. By age 56, he had become a billionaire. By age 66, his wealth reached $17 billion, and by age 72, it exceeded $36 billion. In 2016, Buffett’s wealth grew by an additional $12 billion.
Real Estate
In 1958, Buffett and his wife Susan bought a modest five-bedroom home in Omaha for $31,500 (about $330,000 today). Despite his vast wealth, Buffett still lives in this same house, which is now valued at around $1.2 million.
Warren Buffett’s journey from a young boy with a paper route to a billionaire investor and philanthropist is a testament to his skill, dedication, and humility. Through wise investments, he has built immense wealth, while maintaining a simple lifestyle and giving back generously to society.
