Many entrepreneurs strive to one day add “millionaire,” or even “billionaire,” to their list of achievements. It’s become an industry-wide sign showing they’ve finally made it in business. But billionaire investing mogul Warren Buffett hit back at the notion that eye-watering net worths equate to excellence.
“Greatness does not come about through accumulating great amounts of money, great amounts of publicity or great power in government,” Buffett wrote in his final Berkshire Hathaway shareholder letter published this Monday.
The 95-year-old “Oracle of Ohama,” known as one of the most successful investors of all time, is the 11th richest person in the world, boasting a fortune of $150 billion. But that doesn’t mean he’s splurging on mansions and driving luxury cars off the lot. He’s been thrifty throughout his seven-decade professional career, despite adding billions to his name.
Known for eating at McDonald’s, driving a beat-up old car, and living in his modest Nebraska home, it’s clear his bank account hasn’t changed his ways. Instead of feeling powerful by lavishing in the spoils of his riches, Buffett finds true value and greatness in non-material pursuits.
“When you help someone in any of thousands of ways, you help the world,” Buffett continued. “Kindness is costless but also priceless. Whether you are religious or not, it’s hard to beat The Golden Rule as a guide to behavior…Keep in mind that the cleaning lady is as much a human being as the Chairman.”
Buffett’s thrifty lifestyle: clipping McDonald’s coupons and living in a $31,500 house
Buffett’s golden rule is that everyone should be treated with kindness and respect, no matter if they’ve built a unicorn company, or are a junior-level worker. And he treats the world’s most powerful business leaders the same way, unwilling to shell out on fancy meals to impress them.
The Berkshire Hathaway icon is known for stopping by McDonald’s for a cheap eat, choosing to order two sausage patties, an egg and cheese, or a bacon egg and cheese—all less than $4. He loves the fast-food chain so much he even took Bill Gates there for lunch years ago, instead of wining and dining him at a swanky restaurant. One time, the entrepreneurial pair were at a McDonald’s in Hong Kong, and Gates recalled laughing when Buffett offered to foot the measly bill, pulling coupons out of his pocket. But for the hedge-fund mogul, every penny counts.
The same money philosophy applies to Buffett’s major life purchases. The long-time CEO still lives in the same five bedroom, two-and-a-half bathroom Omaha home he bought for $31,500 back in 1958. The house would be worth around $1.3 million today—far more affordable than the luxurious pads Buffett can afford—yet he says he “wouldn’t trade it for anything.” Buffett’s true fondness for the home lies in the memories of raising his three kids on the property, not its market value.
Uber-rich people boasting net worths like Buffett may also be tempted to ball out on indulgences like expensive cars. But the investing magnate isn’t interested in getting behind the wheel of a Lamborghini or Aston Martin; he once drove a 20-year-old car because he felt it was safer than driving a speedy luxury alternative. And at one point, his license plate even read as “THRIFTY.”
Whether it be mansions or sports cars, Buffett steers clear of making major purchases that reflect his bank account. In fact, he feels giving in could be counterproductive to his happiness.
“I do not think that standard of living equates with cost of living beyond a certain point,” Buffett said at a Berkshire Hathaway shareholders meeting in 2014. “My life would not be happier…it’d be worse if I had six or eight houses or a whole bunch of different things I could have. It just doesn’t correlate.”