Warren Buffett’s decisionmaking is the focus of an article that has been making the rounds online and in social media but the text does not offer insider investment tips from the admired financial guru. Instead, “What Warren Buffett’s House Can Teach You About Success” is highlighting lessons in life philosophy one can learn from the “Oracle of Omaha.”
If you like to marvel over the palatial estates of the super-wealthy, the picture of Buffett’s house that accompanies the article will not be all that impressive. The bare facts are these:
“Warren Buffett bought his house in Omaha, Nebraska in 1958 for $31,500. The house is stucco, and has five bedrooms and 2.5 baths. Warren Buffett has called his house “the third best investment” he ever made, behind only wedding rings.”
Although he is worth an estimated $68 billion, Buffett de-emphasizes displays of material wealth. He is now well known but there were many years when he was not a star outside of the financial world but no matter the level of his fame, Buffett has not used material goods to let the world know he had money. Being concerned with letting others know you are financially well off can lead to one to mismanage money.
By some people’s standards, living in the same house for decades is not a sign of success because they believe that once you have more, you need to “upgrade.” Buffett’s wealth contradicts this notion: one reason he has been so successful is that he makes prudent choices. As he notes in his Giving Pledge:
“I like having an expensive private plane, but owning a half-dozen homes would be a burden. Too often, a vast collection of possessions ends up possessing its owner.”
Buffett illustrates the difference between building wealth and spending a lot. Ultimately it’s all about the life that you’re living and what you’re getting out of it. If you want guidance to help you build wealth, contact a Fee-Only financial advisor.
Photo illustration from www.quotespin.com