Warren Buffett is the third richest person in the world with a growing net worth of $62.1 billion. Most people can’t fathom this type of wealth. Some might buy an extravagant house on a private island, amass a collection of expensive cars and spend the rest of their lives traveling the globe. Living frugally and pinching pennies probably wouldn’t be a consideration.
But Warren Buffett is not your typical billionaire spender. While he’s built a hefty portfolio of investments over the years, he’s also cautious and sensible with his money.
How Buffett spends his fortune might surprise you. Here’s a look at 20 purchases he’s made over the years.
1. His Omaha Home
You might expect Buffett to live on a sprawling estate with ocean views worth tens of millions of dollars and own properties scattered across the country. Instead, his house is a modest property in Omaha that he purchased in 1958 for just $31,500. Buffett told CNBC and Yahoo Finance’s “Off the Cuff” that he’s never had “any great desire to have multiple houses and all kinds of things and multiple cars.”
2. Berkshire Hathaway
Berkshire Hathaway started as a group of textile manufacturing companies dating back to the late 1800s. Buffett began buying shares in the company in 1962. He eventually became its largest shareholder and took control of the company in the mid-1960s. Berkshire Hathaway evolved into a holding company, or a company created for the purpose of buying Buffett’s investments.
3. 2014 Cadillac XTS
It’s not unusual to see billionaires driving Lamborghinis, Rolls Royces or Bentleys that they trade in for newer models every couple of years. This isn’t the case for Buffett. Up until 2014, Buffett, who prefers vehicles by Ford and General Motors, drove an eight-year-old Cadillac.
In a Forbes article, Buffett was quoted as saying, “I only drive about 3,500 miles a year so I will buy a new car very infrequently.” It was GM Chief Executive Mary Barra who convinced the billionaire to upgrade to a newer model after she highlighted all the features he was missing out on by driving an older model. He was sold. In 2014, Buffett replaced his 2006 DTS with a brand new Cadillac XTS.