Many entrepreneurs dream of one day adding “millionaire” or even “billionaire” to their list of achievements. It has become a widely recognized sign in the industry that they have finally “made it” in business. But billionaire investment mogul Warren Buffett has shot down the notion that astronomical fortunes equal excellence.
“Greatness does not come through the accumulation of large amounts of money, large amounts of advertising, or great power in government,” Buffett wrote in his latest letter to Berkshire Hathaway shareholders, published earlier this week.
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The 95-year-old “Oracle of Omaha”, known as one of the most successful investors of all time, is the 11th richest person in the world, with a fortune of US$150 billion (R$794 billion).
But that doesn’t mean he’s spending fortunes on mansions or buying luxury cars. He has been frugal throughout his professional career, which has spanned seven decades, despite adding billions to his name.
Known for eating at McDonald’s, driving an old car and living in his modest Nebraska home, it’s clear his bank account hasn’t changed his habits. Instead of feeling empowered by basking in the fruits of his wealth, Buffett says he finds true value and greatness in non-material achievements.
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“When you help someone in any of the thousands of ways possible, you help the world,” Buffett continued. “Kindness costs nothing, but it’s also invaluable. Whether you’re religious or not, it’s hard to beat the golden rule as a guide to behavior… Remember, the cleaning lady is as human as the board chair.”
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 billion-dollar company or hold a junior position. And he treats the world’s most powerful business leaders the same way, without spending fortunes on fancy dinners to impress them.
The Berkshire Hathaway icon is known for stopping by McDonald’s for a cheap meal, choosing between two sausage burgers, an egg and cheese sandwich, or a bacon and egg and cheese sandwich — all costing less than $4. He likes the fast food chain so much that he even took Bill Gates to lunch there years ago instead of taking him to a fine dining restaurant.
Once, the pair were at a McDonald’s in Hong Kong, and Gates said he laughed when Buffett offered to pay the modest bill, pulling coupons from his pocket. But for the hedge fund mogul, every penny counts.
The same financial philosophy applies to the big purchases in Buffett’s life. The veteran CEO still lives in the same five-bedroom, two-and-a-half-bathroom house in Omaha that he bought for $31,500 in 1958.
Today, the house would be worth about $1.3 million — much more affordable than the luxury mansions Buffett could afford — but he says he “wouldn’t trade it for anything.” Buffett’s true attachment to the house lies in his memories of raising his three children there, not its market value.
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Super-rich people with assets like Buffett’s may also be tempted to spend on indulgences like expensive cars. But the investment mogul isn’t interested in driving a Lamborghini or an Aston Martin; He once drove a 20-year-old car because he thought it was safer than a luxury sports model. And at one point, his license plate even said “THRIFTY.”
Whether it’s mansions or sports cars, Buffett avoids making large purchases that affect his bank account. In fact, he believes that giving in to these desires could be counterproductive to his happiness.
“I don’t believe that quality of life increases along with spending after a certain point,” Buffett said at a Berkshire Hathaway shareholder meeting in 2014. “My life wouldn’t be happier…it would be worse if I had six or eight houses or a bunch of different things I could have. There’s just no correlation.”
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