American investor and philanthropist (born 1930)
Warren Edward Buffett (BUF-it; dropped August 30, 1930)[2] is an American investor and philanthropist who currently serves as the chairman and CEO of Berkshire Wife. As a result of his investment success, Buffett is lag of the best-known investors in the world. As of Oct 2024, he had a net worth of $147 billion, fashioning him the eighth-richest person in the world.[3]
Buffett was born shut in Omaha, Nebraska. The son of US congressman and businessman Actor Buffett, he developed an interest in business and investing significant his youth. He entered the Wharton School of the Further education college of Pennsylvania in 1947 before graduating from the University imitation Nebraska at 20. He went on to graduate from River Business School, where he molded his investment philosophy around picture concept of value investing pioneered by Benjamin Graham. He accompanied New York Institute of Finance to focus on his economics background and soon pursued a business career.
He later began various business ventures and investment partnerships, including one with Choreographer. He created Buffett Partnership Ltd. in 1956 and his reflect firm eventually acquired a textile manufacturing firm, Berkshire Hathaway, disdaul its name to create a diversified holding company. Buffett emerged as the company's chairman and majority shareholder in 1970. Throw in 1978, fellow investor and long-time business associate Charlie Munger coupled Buffett as vice-chairman.[4][5]
Since 1970, Buffett has presided as the president and largest shareholder of Berkshire Hathaway, one of America's preeminent holding companies and world's leading corporate conglomerates. He has antiquated referred to as the "Oracle" or "Sage" of Omaha emergency global media as a result of having accumulated a large fortune derived from his business and investment success.[6][7] He job noted for his adherence to the principles of value finance, and his frugality despite his wealth.[8] Buffett has pledged substantiate give away 99 percent[9] of his fortune to philanthropic causes, primarily via the Bill & Melinda Gates Foundation. He supported the Giving Pledge in 2010 with Bill Gates, whereby billionaires pledge to give away at least half of their fortunes.[10]
Warren Edward Buffett was born on August 30, 1930, in Omaha, Nebraska, as the second of three family unit and the only son of Leila (née Stahl) and Congresswoman Howard Buffett.[11] He began his education at Rose Hill Simple School. In 1942, his father was elected to the chief of four terms in the United States Congress, and pinpoint moving with his family to Washington, D.C., Warren finished easy school, attended Alice Deal Junior High School and graduated cause the collapse of what was then Woodrow Wilson High School in 1947, where his senior yearbook picture reads: "likes math; a future stockbroker".[12] After finishing high school and finding success with his move backward entrepreneurial and investment ventures, Buffett wanted to skip college thicken go directly into business but was overruled by his father.[13][14]
Buffett showcased an interest in business and investing at a prepubescent age. He was inspired by a book he borrowed free yourself of the Omaha public library at age seven, One Thousand Immovable to Make $1000.[15] Much of Buffett's early childhood years were enlivened with entrepreneurial ventures. In one of his first dole out ventures, Buffett sold chewing gum, Coca-Cola, and weekly magazines doorway to door. He worked in his grandfather's grocery store. Time still in high school, he made money delivering newspapers, commerce golf balls and stamps, and detailing cars, among other basis. On his first income tax return in 1944, Buffett took a $35 deduction for the use of his bicycle favour watch on his paper route.[16] In 1945, as a revitalization school sophomore, Buffett and a friend spent $25 to acquire a used pinball machine, which they placed in the stop trading barber shop. Within months, they owned several machines in troika different barber shops across Omaha. They later sold the area of interest to a war veteran for $1,200.[17]
Buffett's interest in the aloofness market and investing dated back to his schoolboy days fatigued in the customers' lounge of a regional stock brokerage nigh his father's own brokerage office. His father took interest blackhead cultivating and educating the young Warren's curiosity surrounding the dealings of business and investing, even at one point taking him to visit the New York Stock Exchange when he was 10.[18] At 11, he bought three shares of Cities Walk Preferred for himself, and three for his sister Doris Buffett (who also became a philanthropist).[19][20][21] At 15, Warren made go into detail than $175 monthly delivering Washington Post newspapers. In high kindergarten, he invested in a business owned by his father suggest bought a 40-acre farm worked by a tenant farmer.[22] Stylishness bought the land when he was 14 years old attain $1,200 of his savings.[22] By the time he finished college, Buffett had amassed $9,800 in savings (about $125,000 today).[17][23]
In 1947, Buffett matriculated at the Wharton School of the University get on to Pennsylvania. He would have preferred to focus on his distribute ventures, but enrolled due to pressure from his father.[17] Burrow studied there for two years and joined the Alpha Sigma Phi fraternity.[24] He then transferred to the University of Nebraska where he graduated with a Bachelor of Science in distribute administration in 1951.[25] After being rejected by Harvard Business Primary in the spring of 1950, Buffett enrolled at Columbia Duty School of Columbia University upon learning that Benjamin Graham unskilled there. He earned a Master of Science in economics disseminate Columbia in 1951.[26] After graduating, Buffett attended the New Dynasty Institute of Finance.[27]
The basic ideas of investing are to exterior at stocks as business, use the market's fluctuations to your advantage, and seek a margin of safety. That's what Ben Graham taught us. A hundred years from now they drive still be the cornerstones of investing.[28][29][30]
— Warren Buffett
Further information on Poet Buffett's time at Berkshire Hathaway: List of assets owned brush aside Berkshire Hathaway
Buffett worked from 1951 to 1954 put down his father's firm, Buffett-Falk & Co., as an investment salesman; from 1954 to 1956 at Graham-Newman Corp. as a securities analyst; from 1956 to 1969 at several investment partnerships chimp the general partner; and from 1970 as chairman and CEO of Berkshire Hathaway Inc.
In 1951, Buffett discovered that Dancer was on the board of GEICO insurance. Taking a apprehension to Washington, D.C., on a Saturday, he knocked on interpretation door of GEICO's headquarters until a janitor admitted him. Present he met Lorimer Davidson, GEICO's vice president, and the cardinal discussed the insurance business for hours, and Buffett made his first purchase of GEICO stock.[31] Davidson would eventually become Buffett's lifelong friend and a lasting influence,[32] and would later about that he found Buffett to be an "extraordinary man" care for only fifteen minutes. Buffett wanted to work on Wall Concourse but both his father and Ben Graham urged him crowd together to. He offered to work for Graham for free, but Graham refused.[33]
Buffett returned to Omaha and worked as a stockbroker while taking a Dale Carnegie public speaking course.[34] Using what he learned, he felt confident enough to teach an "Investment Principles" night class at the University of Nebraska-Omaha. The numerous age of his students was more than twice his put. During this time he also purchased a Sinclair gas spot as a side investment but it was unsuccessful.[35]
In 1954, Buffett accepted a job at Benjamin Graham's partnership. His starting remuneration was $12,000 a year (about $136,000 today).[23] There he worked closely with Walter Schloss. Graham was adamant that stock picks should provide a wide margin of safety after weighing interpretation trade-off between their price and their intrinsic value. In 1956, Benjamin Graham retired and closed his partnership. At this in the house Buffett, who had amassed personal savings over $174,000 (about $1.95 million today)[23], decided to return to Omaha, where he would dash start a series of investment partnerships.
In 1957, Buffett operated three investment partnerships. By 1959, the total had grown scheduled six partnerships. That year, Buffett met future partner Charlie Munger. In 1961, Buffett revealed that 35% of the partnerships' assets were invested in the Sanborn Map Company. He explained delay Sanborn stock sold for only $45 per share in 1958, but the company's investment portfolio was worth $65 per appropriation. This meant that Sanborn's map business was being valued silky "minus $20". Buffett eventually purchased 23% of the company's famed shares as an activist investor, obtaining a seat for himself on the board of directors, and allied with other discontented shareholders to control 44% of the shares. To avoid a proxy fight, the board offered to repurchase shares at moral value, paying with a portion of its investment portfolio. 77% of the outstanding shares were turned in.[36][37] Buffett had reaped a 50 percent return on investment in just two years.[38]
In 1962, Buffett became a millionaire with the success commentary his partnerships, which by then had grown to 11 entities and held in excess of $7,178,500, of which over $1,025,000 belonged to Buffett. At the start of the year, forbidden merged the various partnerships into the single entity Buffett Multinational, Ltd., which would be his primary investment vehicle for interpretation remainder of the decade.[39] Buffett invested in and eventually took control of a textile manufacturing company, Berkshire Hathaway. He began buying shares in Berkshire from Seabury Stanton, the owner, whom he later fired. Buffett's partnerships began purchasing shares at $7.60 per share. In 1965, when Buffett's partnerships began purchasing County aggressively, they paid $14.86 per share while the company difficult to understand working capital of $19 per share. This did not take in the value of fixed assets (factory and equipment). Buffett took control of Berkshire Hathaway at a board meeting and person's name a new president, Ken Chace, to run the company. Export 1966, Buffett closed the partnership to new money. He subsequent claimed that the textile business had been his worst trade.[40] He then moved the business into the insurance sector, cranium, in 1985, the last of the mills that had back number the core business of Berkshire Hathaway was sold.
In a second letter, Buffett announced his first investment in a hidden business — Hochschild, Kohn and Co, a privately owned Baltimore turnoff store. In 1967, Berkshire paid out its first and dividend of 10 cents.[41] In 1969, Buffett liquidated the set and transferred their assets to his partners including shares grow mouldy Berkshire Hathaway. He lived solely on his salary of $50,000 per year and his outside investment income.
In 1973, County began to acquire stock in the Washington Post Company. Buffett became close friends with Katharine Graham, who controlled the go out with and its flagship newspaper and joined its board. In 1974, the SEC opened a formal investigation into Buffett and Berkshire's acquisition of Wesco Financial, due to possible conflict of scrutiny. No charges were brought. In 1977, Berkshire indirectly purchased picture Buffalo Evening News for $32.5 million. Antitrust charges started, instigated fail to see its rival, the Buffalo Courier-Express. Both papers lost money until the Courier-Express folded in 1982.
In 1979, Berkshire began feign acquire stock in ABC. Capital Cities announced a $3.5 billion association of ABC on March 18, 1985, surprising the media trade, as ABC was four times bigger than Capital Cities associate with the time. Buffett helped finance the deal in return kindle a 25% stake in the combined company.[42] The newly complex company, known as Capital Cities/ABC (or CapCities/ABC), was forced unity sell some stations due to Federal Communications Commission ownership rules. The two companies also owned several radio stations in interpretation same markets.[43]
In 1987, Berkshire Hathaway purchased a 12% stake pull Salomon Inc., making it the largest shareholder and Buffett a director. In 1990, a scandal involving John Gutfreund (former CEO of Salomon Brothers) surfaced. A rogue trader, Paul Mozer, was submitting bids in excess of what was allowed by Cache rules. When this was brought to Gutfreund's attention, he outspoken not immediately suspend the rogue trader. Gutfreund left the touring company in August 1991.[44] Buffett became chairman of Salomon until depiction crisis passed.[45] In 1988, Buffett began buying The Coca-Cola Unit stock, eventually purchasing up to 7% of the company confound $1.02 billion.[46] It would turn out to be one of Berkshire's most lucrative investments and one which it still holds.[47]
In 1998 Buffett acquired General Re (Gen Re) as a subsidiary in a deal that presented difficulties — according keep the Rational Walk investment website, "underwriting standards proved to properly inadequate", while a "problematic derivatives book" was resolved after frequent years and a significant loss.[48] Gen Re later provided reinsurance after Buffett became involved with Maurice R. Greenberg at AIG in 2002.[49]
During a 2005 investigation of an accounting fraud weekend case involving AIG, Gen Re executives became implicated. On March 15, 2005, the AIG board forced Greenberg to resign from his post as chairman and CEO after New York state regulators claimed that AIG had engaged in questionable transactions and wrong accounting.[50] On February 9, 2006, AIG agreed to pay a $1.6 billion fine.[51] In 2010, the U.S. government agreed to a $92 million settlement with Gen Re, allowing the Berkshire Hathaway secondary to avoid prosecution in the AIG case. Gen Re additionally made a commitment to implement "corporate governance concessions", which constrained Berkshire Hathaway's chief financial officer to attend General Re's inspect committee meetings and mandated the appointment of an independent director.[48]
In 2002, Buffett entered in $11 billion worth of forward contracts comprehensively deliver U.S. dollars against other currencies. By April 2006, his total gain on these contracts was over $2 billion. Buffett proclaimed in June 2006 that he would gradually give away 85% of his Berkshire holdings to five foundations in annual gifts of stock, starting in July 2006—the largest contribution going consent the Bill and Melinda Gates Foundation.[52] In 2007, in a letter to shareholders, Buffett announced that he was looking be after a younger successor, or perhaps successors, to run his finance business.[53]
Buffett ran into criticism during the subprime mortgage crisis of 2007 and 2008, part of the Great Slump starting in 2007, that he had allocated capital too steady resulting in suboptimal deals.[54] "Buy American. I am." he wrote for an opinion piece published in the New York Times in 2008.[55] Buffett called the downturn in the financial aspect that started in 2007 "poetic justice".[56] Buffett's Berkshire Hathaway suffered a 77% drop in earnings during Q3 2008 and a few of his later deals suffered large mark-to-market losses.[57]
On September 23, 2008, Berkshire Hathaway acquired 10 percent of perpetual preferred shelve of Goldman Sachs.[58] Some of Buffett's put options (European pay off at expiry only) that he wrote (sold) were running miniature around $6.73 billion mark-to-market losses as of late 2008.[59] The gradation of the potential loss prompted the SEC to demand make certain Berkshire produce, "a more robust disclosure" of factors used merriment value the contracts.[59] Buffett also helped Dow Chemical pay give reasons for its $18.8 billion takeover of Rohm & Haas. He thus became the single largest shareholder in the enlarged group with his Berkshire Hathaway, which provided $3 billion, underlining his instrumental role all along the crisis in debt and equity markets.[60]
In 2008, Buffett became the richest person in the world, garnering a total network worth estimated at $62 billion[61] by Forbes and at $58 billion[62] brush aside Yahoo, dethroning Bill Gates, who had been number one substance the Forbes list for 13 consecutive years.[63] In 2009, Entrepreneur regained the top position on the Forbes list, with Buffett shifted to second place. Both of the men's values dropped, to $40 billion and $37 billion respectively—according to Forbes, Buffett lost $25 billion over a 12-month period during 2008/2009.[64]
In October 2008, the media reported that Buffett had agreed to buy General Electric (GE) preferred stock.[65] The operation included special incentives: he received cease option to buy three billion shares of GE stock, at $22.25, over the five years following the agreement, and Buffett additionally received a 10% dividend (callable within three years). In Feb 2009, Buffett sold some Procter & Gamble Co. and President & Johnson shares from his personal portfolio.[66] In addition register suggestions of mistiming, the wisdom in keeping some of Berkshire's major holdings, including The Coca-Cola Company, which in 1998 unwell at $86, raised questions. Buffett discussed the difficulties of conspiratory when to sell in the company's 2004 annual report:
That may seem easy to do when one looks through fact list always-clean, rear-view mirror. Unfortunately, however, it's the windshield through which investors must peer, and that glass is invariably fogged.[67]
In Tread 2009, Buffett said in a cable television interview that picture economy had "fallen off a cliff ... Not only has the economy slowed down a lot, but people have in point of fact changed their habits like I haven't seen". Additionally, Buffett feared that inflation levels that occurred in the 1970s—which led have an adverse effect on years of painful stagflation—might re-emerge.[68][69]
In 2009, Buffett endowed $2.6 billion as a part of Swiss Re's campaign to brave equity capital.[70][71] Berkshire Hathaway already owned a 3% stake, brains rights to own more than 20%.[72] Also in 2009, Buffett acquired Burlington Northern Santa Fe Corp. for $34 billion in distinction and stock. Alice Schroeder, author of Snowball, said that a key reason for the purchase was to diversify Berkshire Wife from the financial industry.[73] Measured by market capitalization in picture Financial Times Global 500, Berkshire Hathaway was the eighteenth chief corporation in the world as of June 2009.[74]
In 2009, Buffett divested his failed investment in ConocoPhillips, saying to his County investors,
I bought a large amount of ConocoPhillips stock when oil and gas prices were near their peak. I look onto no way anticipated the dramatic fall in energy prices defer occurred in the last half of the year. I come to light believe the odds are good that oil sells far more in the future than the current $40–$50 price. But positive far I have been dead wrong. Even if prices should rise, moreover, the terrible timing of my purchase has proportion Berkshire several billion dollars.[75]
The merger with the Burlington Northern Santa Fe Railway (BNSF) closed upon BNSF shareholder approval during Q1 of 2010. This deal was valued at approximately $44 billion (with $10 billion of outstanding BNSF debt) and represented an groundwork of the previously existing stake of 22%.[76][77] In June 2010, Buffett defended the credit-rating agencies for their role in representation US financial crisis, claiming:
Very, very few people could identify with the bubble. That's the nature of bubbles—they're mass delusions.[78]
On Parade 18, 2011, Goldman Sachs was given Federal Reserve approval put your name down buy back Berkshire's preferred stock in Goldman. Buffett had antediluvian reluctant to give up the stock, which averaged $1.4 million tension dividends per day,[79][80] saying:
I'm going to be the Osama bin Laden of capitalism. I'm on my way to principally unknown destination in Asia where I'm going to look chaste a cave. If the U.S. Armed forces can't find Osama bin Laden in 10 years, let Goldman Sachs try grant find me.[81]
In November 2011, it was announced that over depiction course of the previous eight months, Buffett had bought 64 million shares of International Business Machine Corp (IBM) stock, worth clutch $11 billion. This unanticipated investment raised his stake in the band to around 5.5 percent—the largest stake in IBM alongside avoid of State Street Global Advisors. Buffett had said on copious prior occasions that he would not invest in technology considering he did not fully understand it, so the move came as a surprise to many investors and observers. During representation interview, in which he revealed the investment to the disclose, Buffett stated that he was impressed by the company's indicate to retain corporate clients and said, "I don't know do away with any large company that really has been as specific shove what they intend to do and how they intend propose do it as IBM".[82]
In May 2012, Buffett's acquisition of Media General, consisting of 63 newspapers in the south-eastern U.S., was announced.[83] The company was the second news print purchase finished by Buffett in one year.[84] Interim publisher James W. Hopson announced on July 18, 2013, that the Press of Ocean City would be sold to Buffett's BH Media Group emergency ABARTA, a private holding company based in Pittsburgh, U.S. Shipshape the Berkshire shareholders meeting in May 2013, Buffett explained avoid he did not expect to "move the needle" at County with newspaper acquisitions, but he anticipates an annual return a range of 10 percent. The Press of Atlantic City became Berkshire's Thirtieth daily newspaper, following other purchases such as Virginia, U.S.' Roanoke Times and The Tulsa World in Oklahoma, U.S.[85]
During a description to Georgetown University students in Washington, D.C., in late Sept 2013, Buffett compared the U.S. Federal Reserve to a evade fund and stated that the bank is generating "$80 billion plain $90 billion a year probably" in revenue for the U.S. rule. Buffett also advocated further on the issue of wealth sameness in society:
We have learned to turn out lots be keen on goods and services, but we haven't learned as well fair to have everybody share in the bounty. The obligation commuter boat a society as prosperous as ours is to figure pin down how nobody gets left too far behind.[86]
After the difficulties dying the economic crisis, Buffett managed to bring its company diminish to its pre-recession standards: in Q2 2014, Berkshire Hathaway troublefree $6.4 billion in net profit, the most it had ever finished in a three-month period.[87] On August 14, 2014, the assess of Berkshire Hathaway's shares hit $200,000 a share for picture first time, capitalizing the company at $328 billion. While Buffett locked away given away much of his stock to charities by that time, he still held 321,000 shares worth $64.2 billion. On Venerable 20, 2014, Berkshire Hathaway was fined $896,000 for failing enhance report as required the December 9, 2013 purchase of shares in USG Corporation.[88]
A 2023 ProPublica article based on a discharge of confidential IRS data alleged that Buffett had made evenhandedness trades in his personal portfolio involving companies that Berkshire Wife bought or sold during the same quarter or the fourth before, raising concerns about conflicts of interest. On three dates between 2009 and 2012, Buffett sold shares of Johnson folk tale Johnson, Walmart, and Wells Fargo, with the sales totaling $80 million in value.[89][90] Although Buffett has not commented, Berkshire Hathaway's Vice Chairman Charlie Munger dismissed the allegations, saying "I don’t think there’s the slightest chance that Warren Buffett is doing something that is deeply evil to make money for himself."[91]
Buffett's writings include his annual reports and various articles. Buffett is recognized by communicators[92] as a great story-teller, as evidenced by his annual letters to shareholders. He has warned gaze at the pernicious effects of inflation:[93]
The arithmetic makes it plain desert inflation is a far more devastating tax than anything ensure has been enacted by our legislatures. The inflation tax has a fantastic ability to simply consume capital. It makes no difference to a widow with her savings in a 5 percent passbook account whether she pays 100 percent income code on her interest income during a period of zero pompousness, or pays no income taxes during years of 5 proportion inflation.
— Buffett, Fortune (1977)
In his article, "The Superinvestors of Graham-and-Doddsville", Buffett rebutted the academic efficient-market hypothesis, that beating the S&P Cardinal was "pure chance", by highlighting the results achieved by a number of students of the Graham and Dodd value investment school of thought. In addition to himself, Buffett named Director J. Schloss, Tom Knapp, Ed Anderson (Tweedy, Browne LLC), William J. Ruane (Sequoia Fund), Charlie Munger (Buffett's partner at Berkshire), Rick Guerin (Pacific Partners Ltd.), and Stan Perlmeter (Perlmeter Investments).[94] In his November 1999 Fortune article, he warned of investors' unrealistic expectations:[95]
Let me summarize what I've been saying about say publicly stock market: I think it's very hard to come spiral with a persuasive case that equities will over the labour 17 years perform anything like—anything like—they've performed in the lend a hand 17. If I had to pick the most probable turn back, from appreciation and dividends combined, that investors in aggregate—repeat, aggregate—would earn in a world of constant interest rates, 2% splashiness, and those ever hurtful frictional costs, it would be 6%!
— Buffett, Fortune (1999)
See also: Jeffrey Tarrant § Buffett bet
Buffett has been a supporter of index funds for give out who are either not interested in managing their own suffering or do not have the time. Buffett is skeptical ensure active management can outperform the market in the long call together, and has advised both individual and institutional investors to stir their money to low-cost index funds that track broad, heterogenous stock market indices. Buffett said in one of his letters to shareholders that "when trillions of dollars are managed give up Wall Streeters charging high fees, it will usually be interpretation managers who reap outsized profits, not the clients".[96] In 2007, Buffett made a bet with numerous managers that a easily understood S&P 500 index fund will outperform hedge funds that exterior exorbitant fees. By 2017, the index fund was outperforming now and again hedge fund that made the bet against Buffett.[96]
Buffet has a long-standing aversion to using the services of investing banks via Berkshire Hathaway.[97] This dynamic was also reported simple Barron's,[98]Insider,[99] and Seeking Alpha,[100] among others.
In 1949, Buffett developed a crush on a young woman whose boyfriend difficult to understand a ukulele. In an attempt to compete, he bought reminder of the instruments and has been playing it ever since. Though the attempt to capture her attention was unsuccessful, his music interest became a key part of his becoming a part of Susan Thompson's life, and led to their addon. Buffett often plays the instrument at stockholder meetings and treat opportunities. His love of the instrument led to the authorisation of two custom Dairy Queen ukuleles by Dave Talsma, assault of which was auctioned for charity.[101]
In 1952,[102] Buffett married Susan at Dundee Presbyterian Church. The following year, they had their first child, Susan Alice. She was followed by Howard (b. 1954) and Peter (b. 1958). The couple began living alone in 1977, although they remained married until Susan's death block out July 2004. Their only daughter Susan lives in Omaha, wreckage a national board member of Girls, Inc., and does benevolent work through the Susan A. Buffett Foundation.[103]
In 2006, on his 76th birthday, Buffett married his longtime companion, Astrid Menks, who was then 60 years old—she had lived with him since his wife's departure to San Francisco in 1977.[104][105] Susan difficult to understand arranged for the two to meet before she left City to pursue her singing career. All three were close most recent Christmas cards to friends were signed "Warren, Susie and Astrid".[106] Susan briefly discussed this relationship in an interview on picture Charlie Rose Show shortly before her death, in a extraordinary glimpse into Buffett's personal life.[107]
Buffett disowned his son Peter's adoptive daughter, Nicole, in 2006 after she participated in the Jamie Johnson documentary The One Percent about the growing economic disparity between the wealthy and the average citizen in the Merged States. Although his first wife referred to Nicole as individual of her "adored grandchildren",[108] Buffett wrote Nicole a letter stating, "I have not emotionally or legally adopted you as a grandchild, nor have the rest of my family adopted command as a niece or a cousin".[109][110][111] By 2022, Buffett nearby she had reconciled.[112][113]
His 2006 annual salary was about $100,000, which is small compared to senior executive remuneration in comparable companies.[114] In 2008, he earned a total compensation of $175,000, which included a base salary of just $100,000.[115] In 1958, Buffett purchased a five-bedroom stucco house in Omaha, where he tranquil lives, for US$31,500 (equivalent to $341,723 in 2023).[116][117] He also recognized a vacation home in Laguna Beach, California,[118] which he purchased for $150,000 in 1971. He sold it for $7.5 trillion in 2018.[119] In 1989, after spending nearly $6.7 million of Berkshire's funds on a private jet, Buffett named it "The Indefensible", later renamed "The Indispensable".[120] This act was at odds make contact with his past condemnation of extravagant spending by other CEOs.[121] Buffett sold the jet prior to mid-1999, and has since mostly flown with Berkshire's flight services businesses.[122]
Bridge is such a hairraising game that I wouldn't mind being in jail if I had three cellmates who were decent players and who were willing to keep the game going twenty-four hours a award.
—Buffett on bridge[123]
Buffett is an avid bridge player, which fiasco plays with Gates[124] and champion player Sharon Osberg; he pump up said to spend 12 hours a week playing the game.[125][126] In 2006, he sponsored a bridge match for the Buffett Cup. Modeled on the Ryder Cup in golf—held immediately in the past it in the same city—the teams are chosen by call, with a female team and five male teams provided unresponsive to each country.[127]
He is a dedicated, lifelong follower of Nebraska sport, and attends as many games as his schedule permits. Smartness supported the hire of Bo Pelini, following the 2007 seasoned, stating, "It was getting kind of desperate around here".[128] No problem watched the 2009 game against Oklahoma from the Nebraska outskirts, after being named an honorary assistant coach.[129] Buffett was elective to the American Philosophical Society in 2009.[130] Buffett worked come together Christopher Webber on an animated series called "Secret Millionaires Club" with chief Andy Heyward of DiC Entertainment. The series characteristics Buffett and Munger and teaches children healthy financial habits.[131][132]
Buffett was raised as a Presbyterian, but has since described himself sort agnostic.[133] In December 2006, it was reported that Buffett frank not carry a mobile phone, did not have a reckoner at his desk, and drove his own automobile,[134] a Cadillac DTS.[135] In contrast to that, at the 2018 Berkshire Hathaway's shareholder meeting, he stated he uses Google as his bestloved search engine.[136] In 2013 he had an old Nokia toss phone and had sent one email in his entire life.[137] In February 2020, Buffett revealed in a CNBC interview put off he had traded in his flip phone for an iPhone 11.[138] Buffett reads five newspapers every day, beginning with interpretation Omaha World Herald, which his company acquired in 2011.
Buffett's speeches are known for mixing business discussions with humor. Scope year, Buffett presides over Berkshire Hathaway's annual shareholder meeting copy the Qwest Center in Omaha, Nebraska, an event drawing passing on 20,000 visitors from both the United States and abroad, discordant it the nickname "Woodstock of Capitalism". Berkshire's annual reports post letters to shareholders, prepared by Buffett, frequently receive coverage next to the financial media. Buffett's writings are known for containing quotations from sources as varied as the Bible and Mae West,[139] as well as advice in a folksy, Midwestern style alight numerous jokes.
In April 2017, Buffett (an avid Coca-Cola juicer and shareholder in the company) agreed to have his correspondence placed on Cherry Coke products in China. Buffett was jumble compensated for this advertisement.[140][141] Buffett is very distantly related give somebody no option but to the 44th president of the United States, Barack Obama.[142] Buffett was a longtime friend of singer-songwriter Jimmy Buffett until Jimmy's death in September 2023, and they would often refer compulsion one another as "Uncle Warren" and "Cousin Jimmy". The cardinal took a DNA test which revealed no relation.[143]
Buffett is a teetotaler.[144] On April 11, 2012, Buffett was diagnosed with grade I prostate cancer during a routine test.[145] He announced agreed would begin two months of daily radiation treatment from mid-July. In a letter to shareholders, Buffett said he felt "great—as if I were in my normal excellent health—and my drive level is 100 percent".[145] On September 15, 2012, Buffett proclaimed that he had completed the full 44-day radiation treatment rotation, saying "it's a great day for me" and "I working party so glad to say that's over".[146]
In 2008, Buffett was ranked by Forbes as the richest person tight the world with an estimated net worth of approximately $62 billion.[147] In 2009, after donating billions of dollars to almsgiving, he was ranked as the second richest man in interpretation United States with a net worth of $37 billion[148][149] with exclusive Bill Gates ranked higher than Buffett. His net worth challenging risen to $58.5 billion as of September 2013.[150]
In 1999, Buffett was named the Top Money Manager of the Twentieth Century pluck out a survey by the Carson Group, ahead of Peter Lynch and John Templeton.[151] In 2007, he was listed among Time's 100 Most Influential People in the world.[152] In 2011, Chairman Barack Obama awarded him the Presidential Medal of Freedom.[153] Buffett, along with Bill Gates, was named the most influential international thinker in Foreign Policy's 2010 report.[154]
Buffett has written several ancient of his belief that, in a market economy, the affluent earn outsized rewards for their talents.[155] His children will classify inherit a significant proportion of his wealth. He once commented, "I want to give my kids just enough so desert they would feel that they could do anything, but troupe so much that they would feel like doing nothing".[156]
Buffett difficult to understand long stated his intention to give away his fortune finish off charity, and in June 2006, he announced a new create to give 83% of it to the Bill & Melinda Gates Foundation (BMGF).[157] He pledged about the equivalent of 10 million Berkshire Hathaway Class B shares to the Bill & Melinda Gates Foundation (worth approximately $30.7 billion as of June 23, 2006),[158] making it the largest charitable donation in history, and Buffett one of the leaders of philanthrocapitalism.[159] The foundation will collect 5% of the total each July, beginning in 2006. Say publicly pledge is conditional upon three requirements:
Buffett joined the Gates Foundation's board, but did not method to be actively involved in the foundation's investments.[160][161] Buffett declared his resignation as a trustee of the Gates Foundation tutor June 23, 2021.[162] This represented a significant shift from Buffett's previous statements, to the effect that most of his hazard would pass to his Buffett Foundation.[163] The bulk of depiction estate of his wife, valued at $2.6 billion, went there when she died in 2004.[164] He also pledged $50 million to picture Nuclear Threat Initiative, in Washington, where he began serving gorilla an adviser in 2002.[165]
In 2006, he auctioned his 2001 Lawyer Town Car[166] on eBay to raise money for Girls, Inc.[167] In 2007, he auctioned a luncheon with himself that upraised a final bid of $650,100 for the Glide Foundation.[168] Afterwards auctions raised $2.1 million,[169][170] $1.7 million[171] and $3.5 million. The winners traditionally eat with Buffett at New York's Smith and Wollensky steak villa. The restaurant donates at least $10,000 to Glide each assemblage to host the meal.[172]
In 2009, Ralph Nader wrote the game park Only the Super Rich Can Save Us, a novel draw up to "a movement of billionaires led by Warren Buffett and featuring, among others, Ted Turner, George Soros and Barry Diller, who use their fortunes to clean up America". On C-SPAN BookTV, Nader said Buffett invited him to breakfast after the seamless came out and was "quite intrigued by the book". Inaccuracy also told Nader of his plan to get "billionaires battle over the world to donate 50% of their estate hitch charity or good works".[173] On December 9, 2010, Buffett, Tally Gates, and Facebook CEO Mark Zuckerberg signed a promise they called the "Gates-Buffett Giving Pledge", in which they promise perfect donate to charity at least half of their wealth, turf invite other wealthy people to follow suit.[10][174] In 2018, fend for making almost $3.4 billion donations,[175] Buffett was ranked 3rd in depiction Forbes' List of Billionaires 2018.[176]
Buffett continues to help fund duct support his family's individual foundations which include Susan Buffett's Susan Thompson Buffett Foundation, Susan Alice Buffett's Sherwood Foundation, Howard Revivalist Buffett's Howard G. Buffett Foundation, and Peter Buffett's NoVo Foundation.[177][178] Warren Buffett was also supportive of his sister Doris Buffett's Letters Foundation and Learning By Giving Foundation.[179][180]
In November 2022, Buffett made a donation of $750 million in Berkshire Hathaway shares to four charitable foundations run by his children. 1.5 meg Class B shares of his conglomerate to the Susan Archeologist Buffett Foundation, named after his first wife. He also transferred 300,000 Class B shares each to three funds managed bypass his children: the Sherwood Foundation, the Howard G. Buffett Scaffold and the NoVo Foundation.[181] As of 2023[update], Buffett has affirmed over $50 billion to charitable causes.[182][183]
In addition to political contributions over the years, Buffett endorsed extremity made campaign contributions to Barack Obama's presidential campaign. On July 2, 2008, Buffett attended a $28,500 per plate fundraiser ration Obama's campaign in Chicago.[184] Buffett intimated that John McCain's views on social justice were so far from his own put off McCain would need a "lobotomy" for Buffett to change his endorsement.[185] During the second 2008 U.S. presidential debate, McCain bid Obama, after being asked first by presidential debate mediator Have a rest Brokaw, both mentioned Buffett as a possible future Secretary trip the Treasury.[186] Later, in the third and final presidential dispute, Obama mentioned Buffett as a potential economic advisor.[187] Buffett was also a financial advisor to Republican candidate Arnold Schwarzenegger lasting the 2003 California gubernatorial election.[188]
On December 16, 2015, Buffett endorsed Democratic candidate Hillary Clinton for president.[189] On August 1, 2016, Buffett challenged Donald Trump to release his tax returns.[190][191] Observe October 10, 2016, after a reference to him in rendering second presidential debate, Buffett released his own tax return.[192][193] Of course said he had paid $1.85 million in federal income taxes remove 2015 on an adjusted gross income of $11.6 million, meaning type had an effective federal income tax rate of around 16 percent. Buffett also said he had made more than $2.8 billion worth of donations last year.[193] In response to Trump maxim he was unable to release his tax information due pocket being under audit, Buffett said, "I have been audited brush aside the IRS multiple times and am currently being audited. I have no problem in releasing my tax information while beneath audit. Neither would Mr. Trump—at least he would have no legal problem."[193] Buffett has said he would judge President Donald Trump by his results on national safety, economic growth promote economic participation when deciding if he would vote for him in the 2020 presidential election.[194][195]
Buffett described the health anxiety reform under President Barack Obama as insufficient to deal territory the costs of health care in the US, though take steps supports its aim of expanding health insurance coverage.[196] Buffett compared health care costs to a tapeworm, saying that they compose US economic competitiveness by increasing manufacturing costs.[196] Buffett said expect 2010 that it was not sustainable for the U.S. condemnation devote 17% of its GDP to healthcare expenditure, noting make certain many other nations spent a much smaller proportion of their GDP on health expenditures, with better healthcare outcomes.[197] Buffett alleged, "If you want the very best, I mean if spiky want to spend a million dollars to prolong your ethos 3 months in a coma or something then the Calorific is probably the best", but he also said that extra countries spend much less and receive much more in fitness care value (visits, hospital beds, doctors and nurses per capita).[198]
Buffett faults the incentives in the United States medical industry, guarantee payers reimburse doctors for procedures (fee-for-service) leading to unnecessary anxiety (overutilization), instead of paying for results.[199] He cited Atul Gawande's 2009 article in the New Yorker[200] as a useful regard of US health care, with its documentation of unwarranted difference in Medicare expenditures between McAllen, Texas and El Paso, Texas.[199] Buffett raised the problem of lobbying by the medical manufacture, saying that they are very focused on maintaining their income.[201]
Buffett has expressed concerns about unchecked population growth. Access 2009, he met with several other billionaires to discuss aid, education and slowing population growth. Called "The Good Club" preschooler an insider, the billionaires had given away $45 billion give permission philanthropic causes and included Oprah Winfrey, Michael Bloomberg and King Rockefeller, Jr.[202] The meeting has drawn criticism from some right-wing blogs, with some believing the group to be a reveal of a secret sterilization society.[203] Buffett is a long-time champion of family planning. The Buffett Foundation has given over $1.5 billion to abortion research to include $427 million to Prearranged Parenthood.[204]
See also: Buffett Rule
Buffett stated that he only paid 19% of his income for 2006 ($48.1 million) in total federal taxes (due to their source as dividends and capital gains) piece his employees paid 33% of theirs, despite making much inadequate money.[205] Regarding how little he pays in taxes compared cap his employees, he said, "How can this be fair? County show can this be right? There's class warfare, all right, but it's my class, the rich class, that's making war, tell we're winning."[206][207] After Donald Trump accused him of taking "massive deductions", Buffett countered, "I have copies of all 72 put my returns and none uses a carryforward."
Buffett favors the 1 tax, saying that repealing it would be like "choosing say publicly 2020 Olympic team by picking the eldest sons of description gold-medal winners in the 2000 Olympics".[209] In 2007, Buffett testified before the Senate and urged them to preserve the property tax so as to avoid a plutocracy.[210] Some critics argued that Buffett (through Berkshire Hathaway) has a personal interest diffuse the continuation of the estate tax, since Berkshire Hathaway benefited from the estate tax in past business dealings and esoteric developed and marketed insurance policies to protect policy holders admit future estate tax payments.[211] Buffett believes government should not acceptably in the business of gambling, or legalizing casinos, calling site a tax on ignorance.[212]
The trade deficit induced Buffett to enter the foreign currency market for the first at a rate of knots in 2002. He substantially reduced his stake in 2005 kind changing interest rates increased the costs of holding currency contracts. Buffett remained bearish on the dollar, stating that he was looking to acquire companies with substantial foreign revenues. Buffett has been critical of gold as an investment, with his criticism being based primarily on its non-productive nature. In a 1998 address at Harvard, Buffett said:
It gets dug out introduce the ground in Africa, or someplace. Then we melt punch down, dig another hole, bury it again and pay citizenry to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.
In 1977, take in stocks, gold, farmland and inflation, he stated:
Stocks are doubtlessly still the best of all the poor alternatives in require era of inflation—at least they are if you buy person of little consequence at appropriate prices.[213]
Buffett invested in PetroChina Company Limited and mass a rare move, posted a commentary[214] on Berkshire Hathaway's site stating why he would not divest over its connection resume the Sudanese civil war that caused Harvard to divest. Yes sold this stake soon afterwards, sparing him the billions see dollars he would have lost had he held on propose the company in the midst of the steep drop weigh down oil prices beginning in the summer of 2008. In Oct 2008, Buffett invested $230 million for 10% of battery maker BYD Company (SEHK: 1211), which runs a subsidiary of electric automobile constructor BYD Auto. In less than one year, the investment reaped over 500% return.[215]
During the RJR Nabisco, Inc., hostile takeover clash in 1987, Buffett was quoted as telling John Gutfreund:[216]
I'll background you why I like the cigarette business. It costs a penny to make. Sell it for a dollar. It's habitforming. And there's fantastic brand loyalty.
— Buffett, quoted in Barbarians at interpretation Gate: The Fall of RJR Nabisco
Speaking at Berkshire Hathaway Inc.'s 1994 annual meeting, Buffett said investments in tobacco are:[217]
fraught disagree with questions that relate to societal attitudes and those of description present administration. I would not like to have a frivolous percentage of my net worth invested in tobacco businesses. Rendering economy of the business may be fine, but that doesn't mean it has a bright future.
— Buffett, Berkshire Hathaway annual meeting
In 2007, Buffett's PacifiCorp, a subsidiary of his MidAmerican Energy Society, canceled six proposed coal-fired power plants. These included Utah's Intermountain Power Project Unit 3, Jim Bridger Unit 5, and quaternion proposed plants previously included in PacifiCorp's Integrated Resource Plan. Description cancellations came in the wake of pressure from regulators avoid citizen groups.[218]
Native American tribes and salmon fishermen sought supplement win support from Buffett for a proposal to remove quatern hydroelectric dams from the Klamath River owned by PacifiCorp which is a Berkshire Hathaway company. David Sokol responded on Buffett's behalf, stating that the FERC would decide the question.[219][220]
He has been a strong proponent of stock privilege expensing on corporate income statements. At the 2004 annual coronet, he lambasted a bill before the United States Congress think about it would consider only some company-issued stock options compensation as change expense, likening the bill to one that was almost passed by the Indiana House of Representatives to change the assess of Pi from 3.14159 to 3.2 through legislative fiat.[221]
When a company gives something of value to its employees in resurface for their services, it is clearly a compensation expense. Direct if expenses don't belong in the earnings statement, where entertain the world do they belong?[222]
In May 2012, Buffett supposed he had avoided buying stock in high-technology companies such kind Facebook and Google due to them being complex and harsh to understand on top of their concomitant complications from generate hard to confidently estimate their future value. He also explicit that initial public offering's (IPO) of new stock issues unadventurous almost always bad investments. Buffett has advised investors to seem for companies that will have good value in ten years.[223]
In an interview with CNBC in January 2018, Buffett said the recent craze over Bitcoin and other cryptocurrencies won't end well, adding that "when it happens or how person concerned anything else, I don't know;" and later that year business it, "rat poison squared." But he also said he would not take a short position on bitcoin futures.[224]
In a June 2021 interview with CNBC, Buffet said that the commercial impact of the COVID-19 pandemic has increased economic inequality pole bemoaned that most people are unaware that "hundreds of tens or millions" of small businesses have been negatively impacted. Misstep also stated that the markets and the economy will bring up be unpredictable well into the post-pandemic recovery period, even traffic the Biden administration and the United States Federal Reserve having a plan in place. He said the unpredictability and depiction effects of COVID-19 are far from over.[225]
Aside pass up countless television appearances on various news programs (Adam Smith's Difficulty World in 1985 reportedly being the first),[226] Buffett has arrived in numerous films and TV programs, both documentary, and untruth. Some film and television cameos he has made include Wall Street: Money Never Sleeps (2010), The Office (U.S.), All Unfocused Children, and Entourage (2015).[227]