Warren Buffett is known as the “Oracle of Omaha” and is one of the most successful, widely known, and widely followed investors in the world. When people want to know where to put their money or what to invest in next, they often look to see what Buffett is doing. He is a “value investor” known for buying and holding rather than buying and selling. That strategy apparently applies to the home he’s owned for decades, and while it has appreciated, it’s still valued at less than $1 million.
With someone so obviously successful, you would imagine that he is living the high life, probably in New York City, living in a multi-million dollar penthouse – when he’s not jet-setting around the world or hosting parties on his yacht. However, that’s not the case. Despite his incredible net worth, Buffett is a surprisingly frugal man.
Where does Warren Buffett live, and why?
Warren Buffett lives in Omaha, Nebraska, far from the hustle and bustle of Wall Street. In fact, he lives in the same home he’s lived in since 1958, near downtown Omaha. He purchased the home for $31,500, roughly the equivalent of $250,000 today. The home is beautiful but also relatively modest, considering Buffett’s means.
According to Business Insider, the home is the “third best investment” he’s ever made and is currently worth about $652,619, a fraction of his total net worth.
As Buffett puts it, “I’m happy here. If I thought I’d be happier somewhere else, I’d move.” For Buffett, the home meets his needs and is where he raised his family and made his memories.
While the home is certainly nothing like the sprawling Beverly Hills Estate that Jeff Bezos purchased for $165 million in 2020, it’s still a beautiful and spacious home at 6,570 square feet. It has five bedrooms and 2.5 bathrooms.
The home is on a quiet, tree-lined street alongside beautiful, well-manicured lawns. While it isn’t flashy, it is nevertheless a classic and stately home and neighborhood.
What is Warren Buffett’s net worth?
Warren Buffett is worth about $116 billion, according to Bloomberg. Those numbers put him in the rankings as one of the wealthiest people in the world. Still, despite his staggering wealth, Buffett lives frugally. He not only lives in his modest home in a not-so-flashy city, he still drives his 2014 Cadillac XTS.
How Buffett lives so frugally
With such an enormous fortune, it may surprise you to learn that Warren Buffett isn’t a big spender. You won’t see him upgrading to an oversized mansion, and he doesn’t buy new cars very often. For him, buying new vehicles would be a waste of money, especially since he doesn’t drive much.
He eats McDonald’s for breakfast regularly, uses coupons, and prefers to enjoy his family and hobbies over spending money on frivolous things. According to Investopedia, Buffett’s idea of success isn’t about flashy cars and homes. He doesn’t feel the need to keep up with the Joneses.
“Success is really doing what you love and doing it well,” Buffett said. “It’s as simple as that. Really getting to do what you love to do every day—that’s really the ultimate luxury… Your standard of living is not equal to your cost of living.”
Buffett owns and still works at Berkshire Hathaway. His company owns household names such as Benjamin Moore, Duracell, and Dairy Queen. He also owns stock in major corporations like American Express and Apple. The billionaire investor also owns a good chunk of Coca-Cola stock, a product he clearly enjoys, since he reportedly drinks about five cans of it per day.