Warren Buffett

World’s Fifth Richest Man Still Lives In House He Bought For $31,500 In 1958

While the youth of today would be speaking platitudes about the wealth that Elon Musk and Jeff Bezos have, legends would remember Warren Buffett. He was the richest man on the planet when the tag didn’t change hands every opening day at Wall Street. According to the Forbes Rich List, Mr. Buffett has a fortune that goes beyond $100 billion. While he doesn’t own Amazon or Tesla, Buffett has his own impressive portfolio.

It includes companies like Berkshire Hathaway, Duracell, Dairy Queen, NetJets, Fruit of the Loom, and others. He also owns a few diamond companies and has stakes in other MNCs like Apple, American Express, Coca-Cola, and Kraft-Heinz. But what separates him from other billionaires is his extremely reputable frugal tendencies. [1]

Image credit: Smallbones – Own work, Public Domain

To put this in perspective, Warren Buffett isn’t saving his wealth so that he can buy a plot of land on any other planet. He still lives in his modest Nebraska home that he purchased in the 1950s for a sum of $31,500. He made the purchase well before he earned all the gold in his account. Now, if we account for inflation, the sum goes up to $250,000. However, in today’s market, it’s worth about $652,000.

But that is chump change for someone worth over $100 billion. And if we were to look at other billionaires, we would see a stark contrast in the lifestyle they share with Buffett’s lifestyle. After all, there is a noticeable lack of snazzy mansions and Jumbo Jets. This Nebraska home was purchased in 1958, and he has been living in it for the last six decades. 

Read: Billionaire Mark Cuban Opens Online Pharmacy To Provide Affordable Generic Drugs

Advertisement

Warren Buffett Doesn’t Believe In Purchasing 10 Different Homes

Warren Buffett absolutely loves this place, and he has also spoken about how close this place is to his heart, stating that he “wouldn’t trade it for anything.” Now, this is definitely not the only property he owns, but this is his favorite among all for it reminds him of his roots. Living in a ten-story mansion will not remind one of the humble beginnings- but a home for the last 60 years will. Buffett believes that people would do well if they buy a house, but the chances get slimmer and slimmer daily due to a rise in living costs, rise in property costs, and unavailability of land.

Advertisement
Image via Wikimedia Commons

Nevertheless, in his interview with CNBC, he stated, “If you know you’re going to live in a given area or think it’s very likely, for a considerable period of time and you’ve got a family, the home is terrific.” He also considers this purchase to be the third-best investment that he ever made, mentioning, “I gained 52 years of terrific memories with more to come.

Advertisement

Also, if you are thinking that Buffett’s ‘modest house’ is actually small- you are mistaken. This house will be modest for billionaires- not people with a 5-figure salary. The house that Buffett lives in has five bedrooms and 2.5 bathrooms across 6,570 feet. Zillow has estimated the current price of the house at $1.2 million. [2]

But, can you truly put a price on happiness? In an interview with BBC, Warren Buffett’s contentment with this house was quite poignant, stating, “I’m happy there. I’d move if I thought I’d be happier someplace else. How would I improve my life by having 10 houses around the globe? If I wanted to become a superintendent of housing… I could have as a profession, but I don’t manage 10 houses and I don’t want somebody else doing it for me and I don’t know why the hell I’d be happier. I’m warm in the winter, I’m cool in the summer, it’s convenient for me. I couldn’t imagine having a better house.

Keep Reading: A billionaire couple has donated $1 million every week this year. Here’s where the money is going

Advertisement

Sources

  1. World’s fifth richest man still lives in house he bought for $31,500 in 1958.” Unilad. Tom Wood. November 16, 2022
  2. Warren Buffett lives in a modest house that’s worth .001% of his total wealth.” Business Insider. Nathaniel Lee. November 10, 2020.

Advertisement
Advertisement