Warren Buffett, the Oracle of Omaha, is known for his frugality and down-to-earth lifestyle, despite his staggering net worth. While he champions living simply, even Buffett isn’t immune to indulging in a few splurges.
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Things Warren Buffett Splurges On
Here’s a peek at where the billionaire allows himself to loosen the purse strings.
1. Private Jet
Buffett humorously referred to his private jet as “The Indefensible” when he first purchased it, acknowledging the contradiction to his usual thrifty image. However, he later renamed it “The Indispensable” because it saves him valuable time while managing his Berkshire Hathaway empire.
Why It’s a Splurge:
Buffett initially criticized private jet ownership, but he eventually saw the value of owning one for efficiency and convenience.
2. Philanthropy
Buffett’s largest financial commitments are in the form of charitable giving. He has pledged to donate 99% of his wealth through The Giving Pledge, a campaign he co-founded with Bill Gates. His contributions to the Bill & Melinda Gates Foundation and other charitable initiatives amount to billions.
Why It’s a Splurge:
Buffett believes in giving back and ensuring his wealth benefits society rather than accumulating beyond personal needs.
3. Quality Food and Drinks
While Buffett is known for enjoying budget-friendly fast food, he doesn’t skimp on indulging in his favorite treats. Cherry Coke is a staple of his diet, and he owns significant stock in Coca-Cola. Buffett is also a fan of See’s Candies, often gifting their chocolates to friends and colleagues.
Why It’s a Splurge:
Buffett prioritizes happiness and comfort, even if it means indulging in less conventional dietary choices for a billionaire.
4. Luxury Real Estate (to an extent)
Though Buffett famously still lives in the modest house he bought in Omaha in 1958, he also purchased a $150,000 vacation home in Laguna Beach, California, back in 1971 (later selling it for $7.5 million in 2018). While modest by billionaire standards, this purchase was certainly a splurge for Buffett.
Why It’s a Splurge:
This rare foray into luxury real estate allowed him and his family to enjoy time by the ocean.
5. Investing in People
Buffett doesn’t just splurge on material things—he invests in people. His willingness to pay top dollar for talented managers and executives at Berkshire Hathaway has been a cornerstone of his success.
Why It’s a Splurge:
Buffett values human capital, recognizing that great leaders drive great companies.
6. Auction Bids
Buffett has participated in charity auctions, often offering himself up for a lunch meeting with the highest bidder. In 2022, his final charity lunch auction raised $19 million. While the funds go to philanthropy, it showcases his willingness to create value in unconventional ways.
Why It’s a Splurge:
It’s a creative way to merge philanthropy with unique personal experiences.
Lessons from Buffett’s Splurges
These indulgences that Warren Buffett splurges on reveal a simple truth: splurging is okay when done thoughtfully and aligns with your values. Whether it’s for efficiency, joy, or giving back, Buffett proves that financial freedom is about choices, not excess.
Takeaway for Readers:
Splurging doesn’t mean abandoning frugality. Focus on spending intentionally on what truly matters—be it experiences, relationships, or investments in your future.
Image Credit: Yahoo Finance/Nati Harnik/AP/Shutterstock
