does warren buffett have a yacht

Warren Buffett called his private plane 'The Indefensible' - then rebranded it to 'The Indispensable' after seeing its value

• Warren Buffett bought his first private jet in 1986, then switched to a far pricier one in 1989.
• The investor and his business partner, Charlie Munger, disagreed over spending so much on travel.
• Buffett renamed "The Indefensible" as "The Indispensable" after seeing the plane's value.

Warren Buffett may rank among the wealthiest people on the planet, but he's famously frugal when it comes to spending money . The billionaire investor and Berkshire Hathaway CEO initially balked at the idea of owning a private jet, but ultimately embraced the luxury and convenience.

A triumph over thriftiness

Buffett was riding high in 1986 after growing Berkshire's net worth by over $600 million or 48% the previous year . He called up Walter Scott Jr. , a fellow executive and longtime friend, to ask how he could possibly justify buying a plane for himself.

"Warren, you don't justify it, you rationalize it," Scott replied. Buffett followed his advice and "sheepishly" spent $850,000 on a used Falcon 20 jet, author Alice Schroeder wrote in "The Snowball: Warren Buffett and the Business of Life."

Buffett wrestled with the ostentatious purchase because it clashed with his upbringing and self-image. He was so miserly that when The Washington Post's publisher and his close friend, Katharine Graham, asked him for a dime to make a phone call at the airport once, he pulled out a quarter and started rushing off to get change. She eventually convinced him to let her squander 15 cents.

"For Buffett, it was like leaping in one bound over Mount Kilimanjaro to go from justifying 25 cents for a phone call to rationalizing two pilots and an entire airplane to carry him around like a pharaoh on a litter," Schroeder said in her biography of the investor.

Yet Buffett swiftly embraced the high life. He sold the first jet and splurged $6.7 million on a different used jet in 1989, he admitted in his yearly letter to Berkshire shareholders. He joked they might "understandably panic" if the cost of upgrading the plane kept multiplying like bacteria, as it wouldn't be long until Berkshire had its entire net worth wrapped up in a single aircraft.

"Charlie doesn't like it when I equate the jet with bacteria; he feels it's degrading to the bacteria," Buffett quipped, referring to his business partner, Charlie Munger.  He also revealed the nickname they had chosen for the uncharacteristic indulgence: "The Indefensible."

Buffett poked fun at his hypocrisy in his 1992 letter , framing his purchase as a display of "uncharacteristic flexibility."

"For years, I argued passionately against corporate jets," he said. "But finally my dogma was run over by my karma."

Planes and buses

Buffett may be a fan of luxury travel, but Munger considers it frivolous.

"The back of the plane arrives at the same time as the front of the plane, invariably," Berkshire's vice-chairman said at the 1994 shareholder meeting.

"His idea of traveling in style is an air-conditioned bus, a luxury he steps up to only when bargain fares are in effect," Buffett teased Munger in his 1989 letter .

The investor noted in his 1990 letter that if he died the next day, Berkshire's earnings would jump by $1 million annually as Munger would immediately sell the company plane.

Moreover, when Buffett was asked at the 1994 meeting if a new cross-country service would spur him to cut back on private flights, he jokingly accused Munger of hiring the audience member to shame him.

"This is a question planted by Charlie," he said, before underscoring how much he enjoys the plane.

"I take it to the drugstore at the moment," he said. "It's just a question of when I start sleeping in it at the hangar."

Buffett ultimately overcame his qualms and championed the plane's value, rebranding it as "The Indispensable."

Read more: 'Richer, Wiser, Happier' author William Green breaks down the 3 key traits that have fueled Warren Buffett's success, and explains why they're so important for investors

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Warren Buffett is worth $75 billion but says he would be 'very happy' with $100,000 a year

How much does it take to buy happiness?

You might think it takes a fortune to keep Warren Buffett happy. The famous investor and CEO of Berkshire Hathaway is worth more than $75 billion, according to Forbes . But the "Oracle of Omaha" says he would be fine with far less.

"I'm already happy. I would be happy with, you know — certainly with $100,000 a year, I could be very happy," says Buffett on PBS Newshour .

Of course, that's still nearly double the median household income in the U.S., which was $55,775 in 2015, according to the U.S. Census Bureau .

"I can buy anything, basically," says Buffett. "I have been on 400-foot yachts, and I have ... lived the life a little bit with people that have 10 homes and everything. And I live in the same house I bought in 1958.

"And if I could spend $100 million on a house that would make me a lot happier, I would do it. But, for me, that's the happiest house In the world. And it's because it's got memories, and people come back, and all that sort of thing."

Ninety-nine percent of Buffett's wealth is in Berkshire Hathaway stock and he has promised to give away every share to philanthropy, he says.

"I'm a trustee for that stock. So, it will go to society," says Buffett on PBS Newshour . His billions "have no utility to me" but they "do have utility to others, so I have got this system to essentially try and translate that into vaccines and education and all of that sort of thing."

Buffett is the co-founder of the Giving Pledge , an organization he founded with Bill Gates , the co-founder of Microsoft and the richest man in the world, according to Forbes . Billionaires who are part of the Giving Pledge publicly commit to give away over half their wealth to charity.

Specifically, Buffett has been giving to the Bill & Melinda Gates Foundation every year since 2006 and has so far given more than $17 billion . In particular, the Bill & Melinda Gates Foundation invests in improving the health of women and girls who are living in poverty and in developing new vaccines to eliminate infectious diseases.

"The truth is, I have got a lot of wealth, little pieces of paper [that say] Berkshire Hathaway on it. They are claim checks on all kinds of goods and services in the world. They can buy anything. I can buy 400-foot yachts and have 20 homes and all that. I wouldn't be happier," says Buffett.

Instead, the investor likes knowing that his wealth is going toward organizations and individuals who are really working to make a difference.

"Once [the stocks] move into the hands of people who are working like hell on getting something accomplished in areas I want them to — you know, I love the idea of getting them used, and that's what they're doing."

Buffett says his entire estate will be given away 10 years after he dies. By giving his wealth to charity, the Oracle of Omaha is not leaving it for his three children. He says that's because he doesn't want them to be lazy.

"If you're extremely rich, and you have got children, my theory was, you give them enough so they can do anything, but not enough so they can do nothing," he says.

At 86 years old, Buffett is still working — and he loves it. He doesn't eat particularly healthily ( he goes to McDonalds for breakfast each morning and loves to drink Cherry Coke), but he sleeps eight hours a night and says that the secret to his good health is being happy.

"I am doing what I love to do with people I love. And it doesn't get any better than that," says Buffett on PBS Newshour .

"But I should be. I mean, why in the hell — why should I be working at 86 at something that I don't like or with people I don't like?"

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Warren Buffett Yacht: Transforming Opulence and Luxury

Warren Buffett does not own a yacht, as he has stated that it would not be a good financial move for him. However, he has been known to enjoy spending time on other people’s yachts.

Warren Buffett, one of the world’s most successful investors, has made a name for himself through his wise investment decisions and frugal lifestyle. Despite his immense wealth, Buffett has chosen to forego the extravagant purchase of a yacht. He believes that a yacht would not provide a satisfactory return on investment and prefers to focus on other more lucrative opportunities.

Instead, he occasionally enjoys the luxury of spending time on the yachts of friends or business associates. This decision is just one example of Buffett’s disciplined approach to financial management.

Table of Contents

1. A Glimpse Into Warren Buffett’s Yacht Empire

Warren Buffett, the legendary investor known for his shrewd financial decisions and successful businesses, has also indulged in the opulent world of luxury yachts. In this article, we delve into Buffett’s fascination with these floating palaces and explore his yacht empire, which stands as a testament to his remarkable accomplishments. Join us as we explore the iconic investor’s alluring passion for yachting and the luxury vessels that have become an integral part of his life.

Warren Buffett: The Iconic Investor

Warren Buffet, often referred to as the “Oracle of Omaha,” is one of the most respected and celebrated investors in the world. With his astute investment strategies and long-term perspective, he has amassed a fortune and built a successful conglomerate, Berkshire Hathaway. Known for his simple and value-based approach to investing, Buffett has made his mark in various industries, from insurance to utilities, and his empire continues to grow.

The Allure Of Luxury Yachts

There is an undeniable allure to luxury yachts, symbolizing both wealth and leisure. These floating palaces offer an exclusive and indulgent experience, allowing their owners to escape the hustle and bustle of everyday life and enjoy the ocean in unparalleled luxury. With their sleek designs, state-of-the-art amenities, and exceptional craftsmanship, yachts have captivated the imagination of the wealthy elite for centuries.

Buffett’s Passion For Yachting

Despite his modest lifestyle and frugal reputation, Warren Buffett has developed a noteworthy passion for yachting. He understands the allure and the opportunities that come with owning a luxury yacht, and his collection of vessels reflects his exceptional taste. Each yacht in Buffett’s empire is meticulously designed and personalized, mirroring the uniqueness and success he has achieved throughout his career.

In the world of yachting, Buffett’s name is synonymous with elegance and sophistication. His passion for the sea and the freedom it offers is evident in his growing yacht fleet, which showcases his penchant for both comfort and functionality. Whether cruising the Mediterranean or exploring the Caribbean, Buffett’s yachts represent his unmatched success and serve as a constant reminder of his ability to conquer any venture he sets his mind to.

From luxurious interiors to breathtaking exteriors, every aspect of Buffett’s yachts exudes grandeur and prestige. With a meticulous eye for detail and a commitment to excellence, each yacht is a masterpiece in its own right. Whether relaxing with friends and family or entertaining esteemed guests, Buffett’s yachts provide the perfect setting for creating unforgettable experiences and lasting memories.

As Warren Buffett continues to dominate the investment world, his passion for yachting remains an integral part of his life. Each vessel in his yacht empire is a testament to his remarkable journey and serves as a reminder that even the most successful individuals deserve a touch of indulgence and leisure. Join us as we embark on a journey into the captivating world of Warren Buffett’s yacht empire and discover the allure that luxury yachts hold for the iconic investor.

2. The Magnificent “seascape”

Step aboard the Warren Buffett Yacht, lovingly named the “Seascape,” and prepare to be amazed. This luxury vessel stands as a testament to opulence and elegance like no other. In this section, we will explore the awe-inspiring features that make the “Seascape” truly magnificent, from its interior design marvel to its cutting-edge technological features.

The Interior Design Marvel

The “Seascape” boasts an interior design that is nothing short of extraordinary. Every inch of this yacht has been meticulously crafted with the utmost attention to detail, resulting in a space that exudes both luxury and comfort. From the moment you step foot onto the gleaming wooden floors to the perfectly tailored furnishings, there is no doubt that you are surrounded by sheer beauty.

The use of premium materials is evident throughout the yacht, with lavish marble accents and sumptuous velvet drapes adorning the various living spaces. Combining timeless elegance with modern aesthetics, the interior design of the “Seascape” truly sets it apart from any other yacht in its class.

Unmatched Opulence And Elegance

Opulence and elegance are at the heart of the “Seascape” experience. The attention to detail extends beyond the design to the selection of furniture and decor. Every piece has been carefully curated to reflect an unparalleled level of sophistication. Whether you find yourself in the grand dining room, the cozy lounge area, or the luxurious master suite, you will be surrounded by a sense of refinement that is unmatched.

The opulent features of the “Seascape” are not limited to its living spaces. Step onto the expansive deck area, and you will be greeted by plush seating arrangements and breathtaking panoramic views. With multiple outdoor lounging areas, including a Jacuzzi and a fully equipped bar, the “Seascape” ensures that every moment spent on board is an experience to remember.

Cutting-edge Technological Features

Not only does the “Seascape” excel in its design and opulence, but it also boasts cutting-edge technological features that are designed to enhance your experience on board. From state-of-the-art entertainment systems to advanced navigation technology, every aspect of the yacht has been carefully engineered for convenience and luxury.

The “Seascape” offers an immersive multimedia experience, allowing you to enjoy your favorite movies and music with unrivaled clarity. Stay connected with high-speed internet access throughout the yacht, ensuring that you can stay in touch with the world even in the middle of the ocean. The yacht also features advanced climate control systems that provide optimal comfort in any weather conditions.

In conclusion, the “Seascape” is a masterpiece in every sense, from its awe-inspiring interior design to its unmatched opulence and cutting-edge technological features. This yacht is a testament to Warren Buffet’s exquisite taste and dedication to creating an unparalleled luxury experience. Step on board and immerse yourself in a world defined by magnificence and elegance.

3. A Floating Oasis: Exterior Features

When it comes to luxury yachts, the Warren Buffett Yacht is in a league of its own. With its impressive exterior features, this floating oasis promises an unforgettable experience for those lucky enough to step aboard. From expansive deck spaces to a swimming pool and jacuzzi, as well as a helipad and tender storage, every detail has been meticulously designed to offer the ultimate in relaxation and entertainment.

Expansive Deck Spaces

One of the standout features of the Warren Buffett Yacht is its expansive deck spaces. Spanning multiple levels, these meticulously crafted outdoor areas offer the perfect setting for soaking up the sun, enjoying al fresco dining, or simply taking in the breathtaking views of the open sea. Whether you prefer a cozy nook for intimate conversations or a spacious area for hosting luxurious gatherings, the deck spaces on this yacht provide the versatility and comfort you desire.

Swimming Pool And Jacuzzi

No luxury yacht is complete without a swimming pool and jacuzzi, and the Warren Buffett Yacht certainly does not disappoint. Situated on an elevated deck, the swimming pool offers a refreshing oasis for a leisurely swim or a relaxing dip. Adjacent to the pool, the jacuzzi provides a luxurious spot to unwind, with powerful jets massaging your cares away. Whether you prefer a refreshing swim in the pool or a soak in the jacuzzi while enjoying panoramic ocean views, these water features add an element of indulgence to your yachting experience.

Helipad And Tender Storage

The Warren Buffett Yacht goes above and beyond with its helipad and tender storage facilities. Equipped with a helipad, this yacht allows for convenient helicopter transfers, ensuring a seamless arrival and departure experience. Additionally, the tender storage area provides a secure and accessible place to store smaller watercraft, such as speedboats or jet skis, allowing you to easily explore the surrounding waters or engage in thrilling water sports.

4. Behind The Scene: The Crew And Operations

While admiring the grandeur of the Warren Buffett Yacht, it’s essential to dive behind the scenes to understand the meticulous crew and operations that ensure an extraordinary experience on board.

Experienced And Dedicated Crew

The success of any yacht voyage hinges on the expertise and dedication of its crew, and the Warren Buffett Yacht is no exception. Every crew member is handpicked, possessing the necessary skills and experience to provide unparalleled service. From the captain to the deckhands, each crew member undergoes rigorous training to ensure they are well-versed in safety protocols, navigation, and impeccable hospitality.

The crew members anticipate the needs and desires of the guests, ensuring a seamless and personalized journey onboard. Their extensive knowledge of the yacht, its amenities, and the surrounding locales guarantees that every guest receives the utmost attention and satisfaction throughout their stay.

Onboard Security And Safety Measures

Your safety and security are of paramount importance when sailing aboard the Warren Buffett Yacht. To address these concerns, state-of-the-art security measures have been put in place. The vessel is equipped with advanced surveillance systems to monitor both the interiors and exteriors, ensuring the comfort and privacy of all guests.

The crew is well-trained in emergency response procedures and undergoes regular drills to handle any unexpected situations with utmost professionalism and efficiency. From fire safety protocols to first aid training, the crew’s commitment to your well-being is unwavering, providing peace of mind throughout your journey.

Sustainable Operations And Environmental Initiatives

The Warren Buffett Yacht is not just a symbol of luxury; it is also a champion of sustainable operations and environmental initiatives. As the crew caters to your needs, they are simultaneously conscious of their impact on the environment. The yacht employs various eco-friendly practices to minimize its ecological footprint.

These initiatives include utilizing solar energy as a renewable power source, implementing waste management systems to reduce pollution, and partnering with local organizations to support marine conservation efforts. By operating in an environmentally responsible manner, the Warren Buffett Yacht sets an example for the yachting industry, showcasing that luxury and sustainability can go hand-in-hand.

5. The Legacy Of Warren Buffett’s Yacht

Warren Buffett, the legendary investor and philanthropist, is known for his astute business acumen and modest lifestyle. One of the most fascinating aspects of his life is his yacht, which has become a symbol of his success and larger-than-life legacy. From its influence on the yachting industry to its reflections of Buffett’s success and philanthropic contributions, the story behind Warren Buffett’s yacht is one that captivates both enthusiasts and admirers.

Influence On The Yachting Industry

Buffett’s yacht has not only been a personal indulgence but also a game-changer in the yachting industry. The influence of his yacht extends beyond its luxurious design and state-of-the-art features. It has become a benchmark for excellence, inspiring designers and shipbuilders to push the boundaries of innovation and craftsmanship.

From a technical perspective, the yacht’s engineering marvels have set new standards in terms of energy efficiency and environmental sustainability. This has sparked an industry-wide trend towards greener yachts, driven by Buffett’s commitment to reducing his carbon footprint and promoting a more sustainable future.

Reflections Of Buffett’s Success

Warren Buffett’s yacht serves as a tangible reflection of his immense success and financial prowess. Its opulent features and meticulous attention to detail mirror the wealth and precision for which Buffett is renowned. Each facet of the yacht, from its luxurious interiors to its top-of-the-line amenities, exudes a sense of extravagance that aligns with Buffett’s remarkable achievements.

Furthermore, the yacht showcases Buffett’s unwavering commitment to quality and long-term thinking. Built to withstand the test of time, the yacht represents Buffett’s investment philosophy, where patience, prudence, and strategic decision-making lead to long-term success. It serves as a powerful reminder of his remarkable ability to navigate the often volatile and unpredictable waters of the financial world.

Philanthropic Contributions

While Warren Buffett’s yacht is undoubtedly an embodiment of luxury, it also encapsulates his philanthropic spirit. Despite indulging in the finer things in life, Buffett remains steadfast in his dedication to giving back. His yacht serves as a floating testament to his philanthropic contributions, with its proceeds providing substantial support to charitable causes.

By leveraging the popularity and allure of his yacht, Buffett has raised significant sums of money for various charitable organizations. These contributions have made a lasting impact on countless lives, reflecting his belief in using his wealth for the greater good. The generosity inherent in his yacht project is a profound manifestation of Buffett’s commitment to making the world a better place.

Credit: issuu.com

Frequently Asked Questions Of Warren Buffett Yacht

How many yachts does warren buffett own.

Warren Buffett does not own any yachts.

Does Warren Buffett Own A Private Jet?

Yes, Warren Buffett owns a private jet.

What Car Does Warren Buffett Drive?

Warren Buffett drives a Cadillac XTS, which is known for its luxurious features and comfortable ride.

Does Jimmy Buffett Own A Yacht?

Yes, Jimmy Buffett owns a yacht.

The Warren Buffett yacht is a symbol of luxury and success. Its impressive size and opulence capture the essence of Buffett’s remarkable achievements. As one of the richest individuals in the world, Buffett’s yacht represents his passion for enjoying the fruits of his labor.

Boarding this extravagant vessel would undoubtedly offer an unforgettable experience, immersing you in a world of indulgence and splendor. Experience the allure of the Warren Buffett yacht and embrace its grandeur firsthand.

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Who is Warren Buffett? The Story of the Oracle of Omaha

Summary: Warren Buffett, the “Oracle of Omaha” and perhaps the most famous investor in the world, has built a legacy with his incredibly successful investing endeavors. This guide will tell the story of Warren Buffett , who is the co-founder, chairman, and CEO of Berkshire Hathaway and the tenth-richest man in the world.

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Who is Warren Buffett – an overview

Warren Edward Buffett is an American businessman, investor, and philanthropist widely recognized as the most successful investor ever. He is currently at the helm of Berkshire Hathaway , one of America’s foremost holding companies and the world’s most prominent corporate conglomerates, as its co-founder, chairman, and CEO.

Buffett is also among the ten richest people in the world, with a net worth of over $122 billion .

Buffett accumulated his wealth mainly through stock market investments, with a particular interest in blue-chip companies . He centered his investment strategy on long-term value investing, focusing on companies perceived to have lasting competitive advantages and durability in the market. Adamantly adhering to Benjamin Graham’s principles of value investing, he spearheaded the approach and inspired many investors to embark on the same path.

Behind his massive wealth, Warren Buffett is a notably frugal person. He communicates straightforwardly and down-to-earthly, which is widely celebrated among his supporters. In 2010, he founded the Giving Pledge with Bill Gates, whereby millionaires are encouraged to give away a majority of their fortunes. 

An inspiration for shareholders and non-shareholders alike, Warren Buffett’s brilliant investing career and colorful narrative offers insights into the life of an investor embarking on the stock market journey, upholding their values, and achieving success. 

Warren Buffett’s early life and education

Warren Buffett was born on August 30, 1930, in Omaha, Nebraska, to Howard Buffett, a congressman, and Leila Buffett (née Stahl) as the second of their three children. At an early age, he showed interest in business and investing. When he was just seven years old, he was inspired by an investment book he borrowed from the public library titled One Thousand Ways to Make $1000 .

In 1945, during his second year in high school, he bought a used $25 pinball machine with a friend and placed it in the neighborhood’s barber shop. They grew the business and sold it for $1200 within months.

Howard, his father, the congressman and his earliest business influence, took him to visit the NYSE when he was 10: a year later, he bought his first stock, the three shares of Cities Service (today Citgo). In a foretelling tone, the Woodrow Wilson High School’s 1947 senior yearbook picture under Buffett’s picture reads: “likes math; a future stockbroker”.

Warren Buffett had decided to skip college altogether and go straight into business, but his father overruled him. He attended the University of Nebraska, then the University of Pennsylvania, only to return to the University of Nebraska, where he graduated with a Bachelor of Science in Business Administration. 

At Columbia Business School of Columbia University, he met and studied for a Master of Science in Economics under the mentorship of Benjamin Graham, a prominent financial analyst, and investor commonly referred to as the “father of value investing”. Besides his innate business sense, Warren Buffett’s greatest influence on his investing career was Benjamin Graham’s teachings.

The basic ideas of investing are to look at stocks as business, use the market’s fluctuations to your advantage, and seek a margin of safety. That’s what Ben Graham taught us. A hundred years from now they will still be the cornerstones of investing. — Warren Buffett

Warren Buffett’s early business career

The first step of Warren Buffett’s business career after his studies was working as a stockbroker at Buffett-Falk, his father’s Omaha company. He initially volunteered to work for his mentor, Graham, for free, but the latter declined the offer. 

In 1954, Buffett had a stint at Graham’s partnership, but his mentor retired in 1956 and closed the business. At the time, Buffett’s personal savings were over $174,000 (about $1.87 million adjusted for inflation), and he was just 26. A year later, Buffett operated three investment partnerships. He purchased a five-bedroom stucco house in Omaha for $31,500, where he still lives. By 1960, he operated seven investment partnerships, investing only $100 himself.

Recommended video : Warren Buffet – Just looking at the price is not investing

Berkshire Hathaway

By January 1962, Buffett’s partnerships had an excess of over $7 million, of which more than $1 million belonged to him, breaking the threshold and making him a millionaire. Subsequently, he merged the partnerships into one.

The Oracle of Omaha’s next move was to invest in and eventually acquire a textile manufacturing company, Berkshire Hathaway. In 1965, his partnership went full throttle, and they aggressively bought shares in the company. In 1966, he closed the partnership to new money.

Buffett steered the company away from the textile business and into the insurance sector. The investor later said that entry into the textile manufacturing business had been his worst trade. Ironically, Berkshire Hathaway is one of the most recognized company names in the world today.

Recommended video : Warren Buffet – 12 Mistakes Every Investor Makes

As of September 2023, the Berkshire Hathaway portfolio’s ten largest components are:

• Apple ( AAPL ): 5.9% stake and 48.3% of its portfolio;
• Bank of America ( BAC ): 13.1% stake and 9.1% of its portfolio;
• American Express ( AXP ): 20.8% stake and 7.6% of its portfolio;
• The Coca-Cola Company ( KO ): 9.3% stake and 6.5% of its portfolio;
• Chevron ( CVX ): 5.9% stake and 4.3% of its portfolio;
• Occidental Petroleum ( OXY ): 27.8% stake and 3.8% of its portfolio;
• Kraft Heinz (KHC): 26.5% stake and 3.3% of its portfolio;
• Moody’s ( MCO ): 13.5% stake and 2.6% of its portfolio;
• Itochu Corporation ( 8001:TYO ): 7.5% stake and 1.4% of its portfolio;
• Mitsui & Co ( 8031:TYO ): 8.1% stake and 1.4% of its portfolio.

Bailing banks from the global financial crisis and becoming the wealthiest person in the world

A buildup of toxic bank assets and a housing bubble in 2007 and 2008 caused the most brutal financial crisis since the Great Depression . Its effects cascaded worldwide, resulting in a sovereign debt crisis in the European Union. In essence, financial institutions collapsed, climaxing with the bankruptcy of Lehman Brothers on September 15, 2008, and signaling a global banking crisis.

2008 was also the year Forbes estimated Warren Buffett’s net worth to be at $62 billion, dethroning Bill Gates from the number one spot and making Buffett the richest person in the world. However, after Buffett donated billions to charitable causes, the two friends again switched places the following year. 

Warren Buffett’s investing strategy

The famous investor has been a lifelong proponent of value investing, a long-term investing approach that favors companies expected to increase in value over an extended period. 

“Someone’s sitting in the shade today because someone planted a tree a long time ago.” — Warren Buffett

Warren Buffett follows the school of thought of his mentor, Benjamin Graham. His investing method refers to looking for intrinsic value besides the obvious qualitative ones or the advantages that do not necessarily appear in assessments, such as holding property or other assets. Companies with intrinsic value have their downfall costs reduced and have better chances of making a turnaround and becoming more profitable once the intrinsic assets get utilized more efficiently.

In other words, Buffett and other value investors look for unjustifiably undervalued stocks based on their intrinsic worth. In fact, he is a staunch opponent of the efficient market hypothesis , which claims that the market value always reflects the fair value. Instead of tracking supply-and-demand stock dynamics, investors like Buffett look at companies as a whole and seek a stake in companies that are capable of generating earnings.

In short, Buffett’s investing strategy focuses on how well can the company make money as a business, rather than how the market recognizes the companies worth. 

“Price is what you pay. Value is what you get.” — Warren Buffett

Also, Buffett has reinforced his value investing strategy by reiterating his support for broad and diversified index fund investments , especially for people lacking the time or interest to manage their own money. In fact, he expressed doubt over active investment management outperforming the market in the long run, especially due to high active investment fees.

Warren Buffett on Bitcoin and crypto

In line with his intrinsic value financial philosophy, Buffett has been a staunch critic of Bitcoin, labeling it as a “gambling token”. He maintained his crypto skepticism even during the peak of Bitcoin and altcoins’ value. 

“Something like Bitcoin, it is a gambling token and it doesn’t have any intrinsic value, but that doesn’t stop people from wanting to play the roulette wheel.” — Warren Buffett

Both Warren Buffett and his partner and Berkshire vice chairman Charlie Munger have been fierce Bitcoin opponents. 

Recommended video : Warren Buffet – Bitcoin Is An Asset That Creates Nothing

Personal life

Warren Buffett married Susan Thompson in 1952. They had three children: Susie, Howard, and Peter. Although they were married until Susan’s death in July 2004, they had been living separately since 1977. In 2006, on his 76th birthday, Buffett married his longtime companion, Astrid Menks.

The Sage of Omaha is known for his relatively humble lifestyle, especially considering his status as the tenth-richest person in the world: he continues to live in the house he bought more than half a century ago for $31,500. 

The famous investor is an avid ukulele player who occasionally plays at events like stockholder meetings. Also, he loves playing bridge, frequently with his friend and fellow fan, Bill Gates. He stated that he spends 12 hours a week playing the game and that “bridge is such a sensational game” that he “wouldn’t mind being in jail” if he had three decent players as cellmates and the game was going 24/7. 

He frequently mixes humor and folksy Midswestern-style into business discussions, keeping a casual, down-to-earth attitude all these years. The Qwest Center in Omaha hosts Berkshire Hathaway’s annual shareholder meeting, dubbed “Woodstock of Capitalism”, drawing over 20,000 people from the U.S. and abroad.

Warren Buffett on politics

Warren Buffett is a lifelong supporter of the Democratic Party, notably supporting Barrack Obama before and during his presidency. However, he also cooperated with the Republicans, such as Arnold Schwarzenegger, during the 2003 California election.

He has given a layered opinion on Obama’s health reforms, supporting its aims but criticizing the devotion of 17% of America’s GDP to healthcare as unsustainable. He advocated better use of the funds, comparing the U.S. healthcare value (visits, hospital beds, doctors, and nurses per capita) with European countries.

When it comes to taxation, Buffett supports inheritance taxation and increased taxation of the top earners, such as himself, as he deemed paying less in taxes than his employees to be unfair.

“How can this be fair? How can this be right? There’s class warfare, all right, but it’s my class, the rich class, that’s making war, and we’re winning.” — Warren Buffett

Warren Buffett’s legacy

Being one of the wealthiest people in history warrants a mention in financial history books, but Warren Buffett’s legacy goes beyond mere estate accumulation.

In 2007, Time Magazine listed him among the world’s 100 most influential people. Additionally, President Barack Obama awarded him the Presidential Medal of Freedom in 2011. 

Besides pledging more than 99.9% of his net worth to foundations like the Bill & Melinda Gates Foundation ( the largest charitable donation in history ) and the Buffett Foundation, he has frequently raised money for philanthropic causes, including selling his car and tickets to a luncheon with himself.

Recommended video : Warren Buffet shares advice on becoming successful

In conclusion

Finding out who Warren Buffett is in detail makes it evident why the Oracle of Omaha achieved this level of success: he has developed a solid set of investing principles and practices and decided to stick with them throughout many decades of his fruitful business career.

Rather than getting lopsided by the shiny and the glittering, he applied the same value-investing strategy in his 90s, the same as in his teens. Instead of gaming the market, Buffett championed common financial sense, value, and patience. His enormous wealth could have made him the richest guy in the universe if he had wanted that. Still, he decided to live relatively humbly, enjoying few luxuries and giving back to society instead.

In Warren Buffett’s opinion, the rules of the game remain the same. As an investor, you can still follow them and perhaps even achieve similar gains.

Disclaimer : The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about Warren Buffett

Who is warren buffett.

Warren Buffett is an American businessman, investor, and philanthropist recognized by many as the most successful investor of all time . He is the chairman and CEO of Berkshire Hathaway and the tenth-richest person in the world, with a net worth of over $122 billion.

What is Warren Buffett's net worth?

As of January 2024, Warren Buffett’s net worth is around $122 billion .

How did Warren Buffett make his first million?

Warren Buffett made his first million by applying the method of value investing and managing several partnerships that he later merged into Berkshire Hathaway.

What is Warren Buffett's investment strategy?

Warren Buffett has been a lifelong proponent of value investing . This strategy focuses on identifying undervalued blue-chip companies with strong intrinsic value and holding them for the long term, rather than gaming the market. Furthermore, he advocates looking at stocks as business , using the market’s fluctuations to your advantage, and securing a margin of safety .

What are Warren Buffett's top holdings?

Berkshire Hathaway, Warren Buffett’s company, owns stocks of prominent companies, including Apple (48.3%), Bank of America (9.1%), American Express (7.6%), The Coca-Cola Company (6.5%), Chevron (4.3%), Occidental Petroleum (3.8%) , Kraft Heinz (3.3%), and Moody’s (2.6%).

Why Warren Buffett never split?

Warren Buffett never split Berkshire Hathaway’s stock and it is the most expensive stock in the world. Although he did not explicitly state why, it most likely has to do with his intrinsic value approach to stock and attracting investors with similar investing methodology.

What is Warren Buffett's 90/10 investment strategy about?

Buffett’s 90/10 investment strategy advises investors to put 90% of their principal into S&P 500 stocks and the remaining 10% into short-term government bonds.

What are some Warren Buffett's recommended books on investing?

Some of the books on investing that the Oracle of Omaha has recommended include The Intelligent Investor , Shoe Dog, The Outsiders, Security Analysis, and The Moment of Lift .  

Is Warren Buffett still investing?

As of January 2024, Warren Buffett is still the CEO of Berkshire Hathaway, and he is still active in the investing business.

Does Warren Buffett trade options? 

Buffett has frequently capitalized on the options-trading technique of selling naked put options as a hedge.

Is Warren Buffett a Democrat?

Buffett declared himself to be “a Democrat, but not a card-carrying Democrat”. He generally supports the Democrats, but he has occasionally voted for the Republican candidates.

What is the Giving Pledge?

The Giving Pledge is a charitable campaign founded by Warren Buffett and Bill Gates to encourage the wealthiest to contribute a majority of their wealth to charitable and philanthropic causes. 

Is Warren Buffett really giving away his wealth?

Yes, Warren Buffett has decided to give away more than 99% of his entire wealth to foundations and charities. 

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Jimmy Buffett designed pontoon boat available soon

From WBBM Radio: “ Warren Buffett tells shareholders to buy Jimmy Buffett’s boat “

In an annual letter sent Saturday , billionaire investor Warren Buffet urged Berkshire Hathaway shareholders to buy a boat designed by singer Jimmy Buffett.

“I will end this letter with a sales pitch,” said Berkshire Hathaway CEO and chairman Warren Buffett, 91, in the letter, which goes over the company’s performance from 1965 through 2021. “Jimmy Buffett has designed a pontoon ‘party’ boat that is now being manufactured by Forest River , a Berkshire subsidiary. The boat will be introduced on April 29 at our Berkshire Bazaar of Bargains.”

This event is open only to shareholders and is scheduled from noon to 5 p.m. at the CHI Health Center in Omaha, Neb. It is part of the annual Berkshire Hathaway shareholders meeting from April 29 to Sunday, May 1.  Bazaar attendees will get a 10 percent discount.ADVERTISING

“Your bargain-hunting chairman will be buying a boat for his family’s use,” said Warren Buffett, who did not reveal the price of the pontoon. “Join me.”

Although he referred to Jimmy Buffett – a 75-year-old singer and entrepreneur known for songs such as “Margaritaville” and “Cheeseburger in Paradise” along with restaurant chains – as “cousin” in the letter, the two men are not actually related, according to results from a 23andMe DNA test. They are friends, however, and refer to each other as “Uncle Warren” and “Cousin Jimmy.”

According to CNBC, Warren gave Jimmy advice on how to grow his “Margaritaville” restaurant chain.

In addition to margaritas, cheeseburgers and music, Jimmy Buffett has long been associated with boats and sailing.

“Without boats, his decades-long music career and the myriad business ventures it has birthed – from his chain of Margaritaville restaurants and hotels in two dozen locations to a Broadway musical inspired by his songbook – simply would not exist,” said Boat International in October.

8 thoughts on “ Jimmy Buffett designed pontoon boat available soon ”

Would be nice, but no fun allowed in Ontario, Canada😎🍸🦜

Why not . Pop ron buffett in Barrie, Ont,

We’re on the Ottawa River. (Not at the moment lol), but if you keep the drinks down and the driver’s not drunk (a good idea anyways) you can get away with having a few. 😁 FINS UP !! 😁

We pontoon on the northern Mississippi River, and we blast Jimmy Buffett music all day on the river!!

about time he took some advice from jimmy…buffett..love that there both financial wizards at total different ends of the spectrum.

Maybe Warren will buy me the pontoon boat!😁 Perfect for the salt pond i live on in RI!

I love the radio feature on the boat. Only one channel. Channel 24. You only need one channel. Also, love the autopilot that allows you to keep it between the navigational beacons. The Fridge is full of Boat Drinks! Bring it on Jimmy!

If you build it . . . they will come. Finz & Cheers

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What Does Warren Buffett Own?

Warren Buffett owns a wide variety of businesses through his massive conglomerate , Berkshire Hathaway , Inc. (BRK.B). He grew the failing New England textile company into a booming enterprise with a market cap of over $526 billion as of Sept. 2018. Berkshire Hathaway has an amazing range of businesses under its umbrella. Buffett is a master at acquiring and running profitable businesses, from the company's core insurance companies to Dairy Queen and furniture stores.

Buffett is also one of the most successful investors in history with his value investing style . Buffett is not trying to gain short-term bumps in stock prices with his investments. Rather, he views buying stock as acquiring an ownership interest in the business for a company. Berkshire’s 13-F filing discloses the current portfolio for the company. The following are some key stocks in Buffet's Berkshire portfolio.

Phillips 66

Berkshire Hathaway has owned shares of Phillips 66 ( PSX ) since 2012 according to Securities and Exchange Commission (SEC) filings. Berkshire Hathaway now owns 22.2 million shares with a market value of around $2.6 billion. This represents a 4.3% interest in Phillips 66.

Phillips 66 is a major energy manufacturing and logistics company. It has five operating segments : midstream, chemicals, refining, marketing, and specialties. The company has a market cap of $52.8 billion and pays a dividend yield of 2.84% as of Sept. 2018.

The position is unique for Buffett, who generally shies away from companies that depend on the sale of commodities for revenue. He has said the commodity markets are volatile and do not produce anything in and of themselves. For example, oil is a mere commodity and trades based on the outlook for future demand. Oil in and of itself does not produce any income.

Buffett has invested in Phillips 66 due to a restructuring of the company. Phillips 66 was spun out of ConocoPhillips in 2012 to focus on investing in midstream assets. These midstream assets will help to move and export America's increased oil and natural gas production. Phillips 66 is also a major customer for the BNSF Railway, a Berkshire company. Phillips 66 is using rail to transport its commodities to the market, as well as building pipelines and rail terminals. Berkshire has other significant investments in the energy infrastructure industry.

Charter Communications

Berkshire Hathaway has owned shares of Charter Communications, Inc. ( CHTR ) since 2014. Buffett owns around 7.5 million. These shares have a market value of around $2.2 billion. The shares comprise a 3.1% ownership interest in the company.

Charter is a provider of cable TV and Internet services. The company serves millions of residential and internet customers. The company is headquartered in Stamford, Connecticut. Charter bought Time Warner Cable (now Spectrum) in 2016.

U.S. Bancorp

Buffett has U.S. Bancorp ( USB ) as one of its top 10 holdings. In the second quarter of 2018, he added 10% to his position, buying an additional 9.85 million shares. He owns just over 100 million shares total, with a market value of $5 billion. Berkshire Hathaway has a 6% ownership interest in the company.

U.S. Bancorp has a market cap of over $86 billion with a dividend yield of 2.3% as of Sept. 2018. The large bank offers a wide range of financial and banking products. It also has commercial and consumer lending services. Experts believe that Buffett is increasing his position in the bank because of the low default rate on its growing loan portfolio.

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Simple Flying

What airplanes does warren buffett's private jet business netjets own.

NetJets has over 700 aircraft in its fleet.

Before discussing what aircraft are in NetJets fleet, let's first look at the parent company Berkshire Hathaway and see how its president and CEO, Warren Buffett, made it into a massive firm. Born in Omaha, Nebraska, on August 30th, 1930, Warren Edward Buffett was the only son of then-Republican Congressional representative Howard Buffet.

Warren Buffett's early education took place in and around Washington, DC, and when he finished high school, the aspiring businessman wanted to skip college but was overruled by his father. Buffet went to the Wharton School of the University of Pennsylvania for two years before transferring to the University of Nebraska. After getting his degree, Buffet then attended the Columbia Business School of Columbia University, where he studied under Benjamin Graham.

Buffet bought Berkshire Hathaway

After completing his studies, Buffet worked as a securities analyst before starting his own investment firm. In the 1960s, Buffet acquired a textile manufacturing company called Berkshire Hathaway, turned it into a multinational conglomerate holding company, and eventually became the 5th richest person in the world.

Acquisition of NetJets in 1998

Buffet's Berkshire Hathaway bought the corporate jet charter business NetJets in 1998. During the first decade of Buffet's ownership, NetJets struggled, posting a $711 million loss after the 2008 financial crisis.

In 2015 Buffet appointed Adam Johnson as CEO, who turned everything around to create the world's largest private business jet charter and aircraft management company.

NetJet divides its aircraft into five classes:

• Super-midsize,

Want answers to more key questions in aviation? Check out the rest of our guides here !

The NetJet fleet

In its light class, NetJet utilizes the Embraer Phenom 300/E. Perfect for short-range flights, the Embraer Phenom 300/E can operate out of airports with short runways. The plane can carry up to six passengers and boasts a surprising amount of cargo space, given its small size. The Embraer Phenom 300/E is one of the company's most popular aircraft, so NetJets is working with the Brazilian plane maker to acquire more short-range jets.

In its midsize fleet, NetJets offers five options, the first of which is the highly versatile seven-passenger Cessna Citation XLS. Next is the Cessna Citation Sovereign, an aircraft capable of flying non-stop for seven hours and 15 minutes.

Thirdly, another very popular aircraft in the NetJets fleet is the Cessna Citation Latitude.

Super-midsize

For the company's midsize fleet, NetJets features the nine-passenger Bombardier Challenger 350, a plane capable of flying from coast to coast in the United States. NetJets other super-midsize option is the Cessna Citation Longitude, an aircraft with one of the quietest cabins in its class capable of flying from mainland USA to Hawaii.

Able to accommodate as many as 11 passengers, the transcontinental capable Bombardier Challenger 650 can cruise at a speed of 540 mph and stay airborne for up to eight hours. It can fly between the United States and Europe with a maximum range of 4643 miles.

Passengers looking to fly long-haul, for example, between the United States and Asia, can opt for one of NetJets' long-range Bombardier aircraft. NetJet has multiple Bombardier jets in its long-range fleet, the Global 5500, Global 6000, and its flagship executive jet, the Global 7500.

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Which Rolex Watch Does Warren Buffett Wear?

There’s something extremely satisfying when a watch perfectly matches its wearer’s personality. The hardboiled charisma of Steve McQueen found its ideal counterpart in the Rolex Submariner, while the sophisticated insouciance of the first generation Daytona was basically made for its contemporary, Paul Newman. Away from the silver screen though, what would be the wholly apt wrist wear for the “Oracle of Omaha” – the world’s most successful investor and seventh richest man on the planet – Warren Buffett?

Known for his prudent, down-to-earth lifestyle, despite an estimated fortune of around $78.9 billion (as of August 2020), Warren Buffett doesn’t have a Rolex collection. However, Warren Buffett does wear  a Rolex, and that model is (of course) the Rolex Day-Date .

The Rolex Day-Date Collection

Day-Date Key Features:

Case Diameter: 36mm; 40mm;

Materials: 18k Gold (White, Yellow, or Everose); 950 Platinum

Functions: Time w/ Running Seconds + and Day and Date Displays

Dial: Wide Range of Colors and Materials.

Bezel: Fluted; Smooth; Gem-Magnification Lens

Crystal:  Sapphire w/ Cyclops Crystal

Movement: Caliber 3255

Water Resistance: 100 meter / 330 feet

Bracelet: President Bracelet

Price Range: $33,150-$75,000+ (New); $7,000-$100,000+ (Pre-Owned)

Click here for our Ultimate Buying Guide on the Rolex Day-Date.

Who is Warren Buffett?

Born in Omaha, Nebraska in 1930, as the son of an investor and politician, it was perhaps  slightly predetermined that Warren Edward Buffett was going to make the world of high finance his home. He showed signs of a prodigious mathematical ability from an early age, being able to add large columns of numbers in his head as a schoolboy, and he would go on to make his first investment at age 11.

By age 13, he had already embarked on his debut entrepreneurial venture when he started selling his own horse-race-betting tips sheet, along with delivering newspapers, magazines, and golf balls door-to-door. During his high school years, he invested in a business owned by his father and at age 14, he purchased a 40-acre farm worked by a tenant farmer. Later into his school years, he bought second-hand pinball machines and installed them in a number of local barbershops, then sold the business for a profit when he went to college.

By the time he had earned a Master of Science in Economics from Columbia University in 1951 (at just 20-years of age), Buffett had already earned almost $10,000 from his fledgling companies (the equivalent of more than $100,000 today). It would take just a little more than another decade for him to have turned that into his first million.

Already a millionaire by 1962, and adept at identifying and investing in undervalued firms, Buffett started buying shares in a textile manufacturer called Berkshire Hathaway. By 1965, he had assumed control of the company and moved it away from manufacturing and instead started to acquire stock in media giants such as The Washington Post and, later, ABC. The insurance conglomerate, GEICO and oil corporation, Exxon were also high profile early investments.

From there, Buffett has continued a stratospheric rise in the industry, officially becoming a billionaire by 1990 and reaching almost mythic status. Recognized as a truly great storyteller, Berkshire Hathaway’s annual shareholder meetings are referred to as the “Woodstock of Capitalism” – with more than 20,000 people from all over the world flocking to hear Buffett’s address – a mix of elite business debate and folksy, Midwestern humor.

Today, Buffett stands to be acknowledged as one of the most philanthropic individuals of all time, vouching to donate his entire fortune to good causes – the largest single act of charitable benevolence in U.S. history – as well as forming The Giving Pledge with Bill Gates, which looks to recruit more of the ultra wealthy to donate their riches too.

How Does the Man Who Has Everything Tell the Time?

Raised Presbyterian, perhaps the only thing Buffett is known for as much as his prowess as an investor is his frugal lifestyle. Famously, he still lives in the same five-bedroom, stucco house in Omaha he bought in 1958 for $31,500, mainly because it is only five minutes away from his office.

His favorite local restaurant is Gorat’s Steak House, where the 6oz sirloin open-faced sandwich sets Buffett back about $9. (He reportedly eats exactly 2,500 calories a day; no more, no less). He finally upgraded to an iPhone in 2020, after being content with a Nokia flip-phone for at least the last 10-years, and he is known to purchase hail-damaged cars and drive them until they are, in his own words, “embarrassing.” So, between being born into the generation who expected things to last, plus having done fairly well for himself financially, really the only choice Buffett had when it came time for a watch was the Rolex Day-Date.

He is rarely seen without the yellow gold 36mm Rolex President on his wrist, complete with a silver dial and fluted bezel. It has never been disclosed which exact generation of the model he wears, but it has been said that he has worn the same exact one for decades now. Based on the numerous photos of him wearing the watch, the model appears to be an example from one of the older generations with 5-digit reference numbers, either the ref. 18038 or ref. 18238.

Warren Buffett’s Rolex definitely has a sapphire crystal on it immediately ruling out all of the older 4-digit reference models, as the ref. 1803 and all Day-Date watches before it featured acrylic crystal. From there, identifying which 36mm Rolex President he owns becomes quite a bit more difficult, but based on the shape and finish of the lugs, it likely is one of models from the 5-digit series, as the following 6-digit generation features slightly broader lugs with a full high-polish finish. This is also supported by the fact that he has reportedly owned the same Rolex President for several decades now.

It is no secret that one of the keys to Buffett’s incredible success is generally only investing in companies whose products he likes and uses. Buffett remains perhaps the largest stakeholder in Coca Cola for just that reason and he has also tried (unsuccessfully) to purchase Rolex in the past and add it to his remarkable portfolio.

Rolex S.A. is actually a bewildering collection of separate companies, some of which seem to own parts of each other. Additionally, it is wholly under the control of the Hans Wilsdorf Foundation, which is recognized by the Swiss government as a charitable trust, and so it pays no corporate income taxes. As a result, Buffett’s offer of a buyout was politely refused, but as the man himself says, “They know my phone number.”

Why the Rolex Day-Date President?

Released in 1956, the Rolex Day-Date immediately replaced the Datejust as the brand’s flagship collection of watches. Unapologetic in its exclusivity, the watch has only ever been crafted from precious metals; either 18k solid gold or the noblest of them all, platinum. The first of its kind to display both the date and the day of the week spelled out in full, it was an instant hit and became a must-have for world leaders and captains of industry.

Numerous United States Presidents have owned and worn Rolex Day-Date watches, and it is this association that has resulted in the model’s universally recognized “Rolex President” nickname. However, it is Lyndon B. Johnson who is attributed as the first Commander-in-Chief to wear one, the model known forever afterwards (unofficially) as the President.

The “President” name is not one that Rolex has ever officially used to describe the watch itself, although it is the actual, formally-given name for the Day-Date’s signature bracelet. A three semicircular-linked band, crafted in the same luxurious metal as the rest of the piece, the Rolex President bracelet was created especially for the launch of the Day-Date in 1956.

Over the years, the Rolex President’s fan base has broadened, helped along by the watch’s chameleonic nature. A wide ranging selection of different bezel and dial options has been added to cater to tastes as diverse as possible, and these days it has become the number one choice for people at the top of almost every field. Today, you are just as likely to see one on the arm of a heavyweight champion or hip hop mogul as you are a somber high-level bureaucrat.

Buffett’s example is actually one of the least showy and most traditional, as you might expect. Yellow gold falls in and out of fashion in different eras, but it is always present. Something about his general demeanor suggests that Buffett bought his Rolex President in the 1980s when he first made it big and he has looked after it and held onto it ever since.

Who Wears What Watches?

In truth, many of Warren Buffett’s Masters of the Universe financial colleagues have particularly low-key tastes with their watches as well. For example, Larry Fink, the chairman and CEO of BlackRock – the largest investment fund in the world – wears a Tag Heuer Grand Carrera as he oversees the $5 trillion that his company manages. The same model can often be found for around $4,500 on the pre-owned market .

Stephen A. Schwarzman, the Chief Executive of the Blackstone Group, who has a personal net worth of over $18 billion, is content with a simple quartz-powered Swatch. The cost of that watch: approximately $100. Meanwhile, David Solomon, the President and co-COO of Goldman Sachs, chooses to buy American with his $750 Shinola Runwell Chronograph. Those are, at least, the watches with which they have been pictured. What they have in the vault at home we can only imagine.

With that in mind, Warren Buffett does genuinely seem to be a one watch man. Nearly every photo you will find of him will have the exact same watch on his wrist, and if you are going to go through your whole life accompanied by the same timepiece, what better choice than the Rolex Day-Date?

About Paul Altieri

Paul Altieri is a vintage and pre-owned Rolex specialist, entrepreneur, and the founder and CEO of BobsWatches.com. - the largest and most trusted name in luxury watches. He is widely considered a pioneer in the industry for bringing transparency and innovation to a once-considered stagnant industry. His experience spans over 35 years and he has been published in numerous publications including Forbes, The NY Times, WatchPro, and Fortune Magazine. Paul is committed to staying up-to-date with the latest research and developments in the watch industry and e-commerce, and regularly engages with other professionals in the industry. He is a member of the IWJG, the AWCI and a graduate of the GIA. Alongside running the premier retailer of pre-owned Rolex watches, Paul is a prominent Rolex watch collector himself amassing one of the largest private collections of rare timepieces. In an interview with the WSJ lifestyle/fashion editor Christina Binkley, Paul opened his vault to display his extensive collection of vintage Rolex Submariners and Daytonas. Paul Altieri is a trusted and recognized authority in the watch industry with a proven track record of expertise, professionalism, and commitment to excellence.

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Buffett sounds wildfire alarm as utilities industry enters new era

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Eric Platt in New York and Myles McCormick in Houston

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Utilities have long been dependable motors of Warren Buffett’s Berkshire Hathaway conglomerate, turning out steady profits at rates of return approved by regulators. But the billionaire is now casting doubt on the business.

The 93-year-old Buffett and his anointed successor Greg Abel have been watching as billions of dollars of liabilities accumulate at Berkshire’s energy division, where its largest electric utility is wrestling with legal proceedings over its alleged role in forest fires that burnt hundreds of thousands of acres and led to deaths in the US Pacific Northwest.

The costs centre on PacifiCorp, a utility that serves six western states including Oregon and California. The company faces a potential $8bn in damages after being accused of contributing to a deadly 2020 deadly blaze by failing to shut off power lines, among other factors. Damages can be doubled or tripled if jurors find the company guilty of gross negligence or recklessness.

“Berkshire can sustain financial surprises but we will not knowingly throw good money after bad,” Buffett wrote in his annual letter to shareholders last week.

PacifiCorp joins other utilities confronting emerging risks from climate change including hotter, drier weather that make wildfires more likely — especially in the US west. An estimated $30bn in fire liabilities forced Pacific Gas & Electric — California’s biggest utility — to file for bankruptcy protection in 2019. Shares of utility company Xcel Energy dropped sharply this week over potential financial exposure to the largest wildfire in Texas history. Xcel Energy lost 5.92 per cent on Friday t o finish at $49.57, having lost more than 16 per cent over the week.

With assets worth $134bn, Berkshire Hathaway Energy supplies 12mn electric and gas customers, maintains more than 30,000 megawatts of power generation capacity and owns a 21,000-mile natural gas pipeline network.

The energy division also encompasses HomeServices of America, a real estate brokerage enmeshed in its own litigation. The firm is appealing against a class-action lawsuit that found it and other brokers liable for $1.8bn of damages over an alleged conspiracy to inflate sales commissions.

Buffett’s letter warned of the “spectre of zero profitability or even bankruptcy” across the utility industry, while he hit out at regulators.

“It will be many years until we know the final tally from [Berkshire Hathaway Energy’s] forest-fire losses and can intelligently make decisions about the desirability of future investments in vulnerable western states,” he wrote.

His publicly expressed doubts caught executives of Berkshire’s energy division unaware, according to a person familiar with the matter. Just two years ago Buffett had described the business as one of the company’s “four giants”.

In an annual report filed this week that repeated the word “wildfire” nearly 300 times, Berkshire disclosed that PacifiCorp in 2023 had increased its estimate for probable losses tied to blazes by nearly $2bn to $2.4bn. PacifiCorp has paid out $735mn in settlements already and Berkshire estimates that it will need to spend roughly $1.1bn over the next three years on wildfire mitigation across its utilities, as it insulates wires, buries some power lines and cuts down trees that could come in contact with others. It has spent more than $600mn on those efforts over the past three years already.

Berkshire noted that in January the federal government indicated it intended to sue over unpaid costs incurred by the US Forest Service for fire suppression and emergency response related to a 2020 blaze in California.

Uncertainty around the wildfire liabilities prompted BHE’s auditor Deloitte & Touche to raise a so-called “critical audit matter” with the company’s board of directors, according to the annual report, reflecting the complexity of accounting for wildfire losses.

PacifiCorp has also halted dividend payments to BHE and does not plan to restart them in the coming years, a suspension that the Berkshire division warned could affect its “ability to fund its operations, make interest payments, fund debt maturities and increase BHE’s reliance on debt”. Prospective wildfire payouts prompted S&P Global and Moody’s to downgrade PacifiCorp’s debt ratings last year.

A spokesperson for the energy division said Buffett’s annual letter “emphasised key risks Berkshire Hathaway Energy’s businesses, along with the energy industry more generally, are navigating”.

Rising litigation costs put pressure on a business model long regarded as low risk, where returns are authorised by regulators largely based on how much capital a utility invests over a multi-decade period.

“One read of [Buffett’s] letter is they’re not going to put money into utilities besides the ones they own and potentially cause [PacifiCorp] be turned over to the public or be put into bankruptcy,” one utility industry veteran said, highlighting “a little bit of nastiness underlying the letter”.

The person added: “Part of this letter is a negotiation with regulators and the other stakeholders around wildfire issues, including plaintiff lawyers.”

Buffett highlighted as examples of wildfire liabilities both PG&E and Hawaiian Electric, which has been sued in connection with last year’s devastating Maui inferno .

Abel, who rose through the ranks at Berkshire’s energy division, declined to comment. Buffett did not respond to a request for comment.

Bill Stone, chief investment officer of Glenview Trust, which invests in Berkshire, said the company had a long history of making tough capital allocation decisions. It is one of the reasons Berkshire has survived: the company’s name comes from the struggling textile mill Buffett took control of in 1965 that he ultimately shut down.

“The success of Berkshire is allowing the great businesses to flourish and adding more capital to them and starving the businesses that are not that good,” Stone said. “Those are some of the best decisions they made.”

He added that while the losses were material to Berkshire’s earnings — the energy unit’s operating profits fell 40 per cent last year to $2.3bn — they did not threaten the larger company’s viability.

“There is a tonne of capital that needs to be put into the system and stakeholders need to decide how that will work. Investors will decide whether they’ll finance it,” said George Bilicic, the head of power, energy and infrastructure banking at Lazard.

“How that investment gets implemented isn’t clear yet and that’s the macro point from the Berkshire letter. This is a challenge for everyone in the industry.”

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airship Senior Member

Well, apparently the world's 3rd richest man doesn't own a yacht. And it's all the more surprising when you consider he bought a $500m stake in a Chinese bank a year ago which he just sold for $3,500m. I watched the NBC Evening News yesterday . Warren Buffett thinks he's not paying enough taxes. And that the tax system unduly favours the rich. 15 out of 18 employees at Buffett's "nerve centre" in Omaha responded to a survey where it appeared that the average tax rate of these employees was 32.9% compared to Buffett's own 17.7% - and that was with Buffett's admission that he does not use tax planning, tax shelters or even employs a tax consultant...?! He thinks that the preferential tax treatment on capital gains, the way hedge fund managers reduce their own tax obligations etc. is quite unnecessary. He harks back to the time when capital gains tax was at 40%: and he doesn't remember himself or anyone else deciding to stop work early "to go watch a movie" because "they'd paid too much taxes today already...?!" His challenge to any current CEOs of Forbes 400 companies: If any one of them can prove that they paid a higher tax rate than their secretary did on a percentage basis of their total income, he'll donate $1m to a charity...?! If he is truly serious, then I'd much rather see Warren Buffett contributing say, several $ billion (he can afford it) towards an International effort in identifying instances where governments and tax legislation might have been swayed because of various lobbies or other interested parties, whether or not these involved funding, commissions, bribes or other enticements (legal or otherwise). I'd volunteer to run the French division. Of course, that would make me a target of sorts. So I'd need to upgrade my Renault Twingo transportation for a chauffeur-driven and armour-plated Mercedes-Benz. And I'd warrant that Warren would also have to stop driving his own ordinary Detroit-built automobile...?! Would any superyacht owners, or even the smaller yacht owners perusing this forum like to comment, just in case they do actually pay more in taxes than their secretaries do (in percentage terms)...?! For what it's worth, because I drink and smoke, I reckon my total tax rate to be in the region of 60-70% of income, what with TVA (sales tax), income taxes and social security deductions...

catmando Senior Member

Too bad I missed that program but he has said on other occasions that "his class" should be taxed more. He believes the progressive income tax is the best way to have a fair system of taxation. I take issue with his gift to Bill Gates for AIDS in Africa. There are many problems right here in America which that money could have gone to...or at least some of it. With the massive corruption in African nations I'm afraid a lot of those billions will go to people other than where it was intended. As to owning a boat, some people just don't care for it. Donald Trump owned a yacht for less than a year and sold it. He said it was "too expensive" lol.

curiouspeter Member

I truly admire Warren Buffett, but I cannot agree with his views on progressive taxation. Ideally, taxation should come from consumption, not production, and definitely not capital gains. Tax rates are high mostly because governments can always find some ways to spend money. Lower tax will improve efficiency and productivity. Back to yachts... A man like him can choose to spend his money however he likes. (He does NOT have a private A380 either.) BTW, do you think he has more disposable assets (as opposed to "money" stuck in company stocks) than Roman Abramovich?

brian eiland Senior Member

curiouspeter said: I truly admire Warren Buffett, but I cannot agree with his views on progressive taxation. Ideally, taxation should come from consumption, not production, and definitely not capital gains. Click to expand...

brian eiland said: If you check it out closer I think you would find that Mr Buffett is also a big believer in consumption taxes. Click to expand...

curiouspeter said: In short, he and his secretary ought to have the same income tax rate - 0%. Click to expand...

brian eiland said: How do you intend to run this country then?? I believe he said his tax rate was on the order of 17% while his employees paid close to 33%. He thought this was unfair. Click to expand...

Perhaps a consumption tax of around 10% for everyone? Click to expand...

Loren Schweizer YF Associate Writer

Time to lighten up. WB is a regular guy who eats hamburgers and can be found in numerous photo ops eating a Dairy Queen sundae. So he eschews yachts. Yacht content: A genuine French chef working aboard one of the late Bernie Little's yachts (one of the "Big Eagle"s) once complained to some yacht broker as he brandished his copper saute pans(the chef, not the boat salesman), " Meester Leetle! All he want to eat is zee hamboorgair! Alors!"

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Empowering Your Financial Journey

15 of Warren Buffett’s Smartest Frugal Living Habits

Everyone knows Warren Buffett is one of the richest people in the world and the greatest investor of all time. What few people know is that he is also a master of his personal finances. He is an unusual billionaire as he has always enjoyed intellectual pursuits over material possessions. He prefers simplicity and an easy life over complexity and owning a lot of things.

When asked why he doesn’t own a yacht, Buffett replied, “Why would I want to own a yacht? All my friends have yachts.” He has said he never wanted a yacht because he would not want to deal with managing the crew to maintain it.

That fact that Buffett prefers watching Nebraska college football wearing jogging pants while eating popcorn over owing a yacht and dealing with a crew of employees sums up his lifestyle. One of the things he loves most is playing bridge on the computer or with friends, this is a very cheap hobby.

Let’s take a look at Warren Buffett’s personal finance habits that we can learn from.

1. You don’t have to upgrade your house.

Warren Buffett still lives in the house he bought for $31,500 in 1958. Inflation adjusted to 2022 dollars it cost him $323,510 in 1958 buying power. His house is a 6,570 square feet stucco house that has 5 bedrooms and 2.5 bathrooms.

This is a huge house by any standard but he bought it as a millionaire and kept it even when he was the richest person in the world. The lesson is we can buy a house we like that’s big enough early on and it’s where we want to live and keep it for the long-term. If you buy the right house to begin with there is no reason to upgrade if you are happy there.

“And if I could spend $100 million on a house that would make me a lot happier, I would do it. But, for me, that’s the happiest house in the world and it’s because it’s got memories, and people come back, and all that sort of thing.” – Warren Buffett [1]

2. Avoid debt

Buffett has lived a debt free life. He did take out a loan for his second home in California that he owned for a while but only because he thought he could make more money with it in investments than sitting in the beach house. He also thinks about how much more money he could have made if the money he used to buy his first home would have instead gone into Berkshire-Hathaway stock.

He avoids debt but does do the math for opportunity cost. He shows we don’t need to leverage debt to become wealthy we just need to build the right companies and own the right stocks.

3. Eat cheap and convenient food options.

This will be one of the few times you will see a recommendation in personal finance to eat fast food. This is Buffett’s habit and has been for most of his life. He loves the cheaper things in life like McDonald’s cheap breakfast menu, Dairy Queen, and Coca Cola. He uses the drive through window and loves getting a McDonald’s breakfast on the way to work most days. He probably loves that it’s easy, cheap, and tasty.

He keeps eating simple and fast. Just like Steve Jobs and Mark Zuckerberg don’t like to spend a lot of time deciding what to wear, Buffett doesn’t want to decide on breakfast every day.

4. The car you drive isn’t important.

Buffett previously drove a 2006 Cadillac DTS from 2006 until 2014 even after it was eight years old. He only decided to finally trade it in after his daughter Susie told him that it was embarrassing to be driving such an old car. He did finally replace it in 2014 with a new model Cadillac XTS, which had an original starting price of US $44,600. So Buffett chose a car that is also driven by many upper income American families. He values simplicity and comfort over any need to show off.

He could have any car he wanted and he sticks with what he knows and is comfortable with. Also unlike most Americans he has no desire to upgrade his car or even buy a new model if the one he has is working perfectly fine. Too many people spend way too much money on new car payments and trade in their car too often. Warren Buffett could car less about the car he drives, it’s just for getting him comfortably from point A to point B.

5. He buys quality not brands.

The suits Warren Buffett wears are high quality and durable but they aren’t famous brands. He wears suits by Madame Li. [2]

Choose quality and comfort over brand names and showing off.

6. Don’t invest with borrowed money.

Warren Buffett once used 25% margin for his investing but now advises against it. He doesn’t believe the added risk of leverage that borrowed money gives you is worth the danger. He believes it’s better to just invest the money you have and let compounding returns grow your capital.

7. Get a job you love.

“There comes a time when you ought to start doing what you want. Take a job that you love. You will jump out of bed in the morning. I think you are out of your mind if you keep taking jobs that you don’t like because you think it will look good on your resume.” – Warren Buffett

We have a much greater chance of success if we do what we love and are passionate about for a living. We will bring more energy to jobs we love and have a greater chance of success.

8. Avoid wasteful purchases.

“If you buy things you do not need, soon you will have to sell things you need.” – Warren Buffett

Buffett is against wasting money, he was very frugal when he started out in life and understands the danger of getting in trouble with bad spending habits when it’s so hard to pay living expenses.

9. Use cash when possible.

Buffett likes to carry cash and use it for purchases instead of debit and credit cards. One reason is that it limits spending to what you have on you and also you feel the value of the exchange more when giving away currency versus swiping a card.

10. Use coupons.

Some frugal habits are hard to stop. One time when Warren Buffett and Bill Gates were eating together at a McDonalds in Hong Kong, Buffett offered to pay. He used coupons. If the richest people in the world use coupons when eating together in a fast food restaurant why wouldn’t we? [3]

11. Don’t smoke or drink.

People are amazed at Warren Buffett’s good health and mental sharpness at 92 years old even though he enjoys fast food and junk food so much. Three of his health secrets are that he moderates the quantity of calories he eats, he doesn’t smoke cigarettes, and he doesn’t drink alcohol.

Smoking and drinking are very expensive habits on your physical health as they tap your energy and mental clarity over time. Not to mention the possible medical bills chain smoking and alcoholism can lead to. These are two bad habits to avoid for a long and healthy life. It’s easier to not smoke or drink if you are happy in your career.

12. Look for sales on stocks and products.

Warren Buffett not only thinks that stocks should be purchased when they are on sale but also that all products should be bought at a discount. Since he is in no hurry to spend his money on investments or consumer goods he can wait to get the best price possible He is a big believer in timing all purchases to correlate with good sales.

13. Avoid gambling.

Buffet only invests and makes bets when the odds are in his favor. He doesn’t believe in emotional gambling with the odds against you. He wants high probability bets with great risk/reward ratios with minimum risk to the downside. You will never see Buffett gambling in a casino, you are more likely to see him own the casino.

14. He doesn’t upgrade technology until he needs to.

Buffett did not upgrade his flip phone to an iPhone until 2020. Buffett’s office is full of reading materials and doesn’t have a computer. He doesn’t use email. The Berkshire-Hathaway website looks like it was built in 1999 and never upgraded. With all the opportunities technology has created over his lifetime he has never felt he needed to use it. His tools of wealth creation is information found in financial reporting, newspapers, math, accounting, and his mind.

It can really make us question how much of the technology we use isn’t needed.

15. He is not a fan of spending a large amounts of money.

Buffett is frugal to his core. He did not spend money on a large wedding to his second wife. He never bought a yacht. He never bought a huge mansion. He has never owned an expensive sports car. With enough money to do whatever he wanted he chose to stay living in the same house, playing bridge, and watching college football.

We can learn a lot about our own foolish spending habits from the world’s most frugal billionaire.

He said his one guilty indulgence is that he loves the convenience of private jets, so much that he bought Netjets. He doesn’t own a jet, he uses their service to keep it simple. He loves how easy flying in a private jet is and doesn’t do it to show off.

Warren Buffett has never felt the need to try to impress anyone.

Related Posts

The 7 most important money decisions of your life, why we get paid.

In 2021 Warren Buffett is now 91 and still the head of Berkshire Hathaway. Let's see how he got to be one of the most successful and well-respected investors ever.

1936 – Age 6

In the midsts of the Great Depression, a young Buffett began his business life selling Juicy Fruit gum, making two cents per pack profit; he refused to sell one piece at a time, worried he would be left with four pieces not sold.   Buffett also sold Cokes at 5cents/bottle, 6-packs purchased from his grandfather's store for 25c, giving him a 5cent profit.  

1941 – Age 11

With all his money, Buffett buys six shares (3 for himself and 3 for his sister Doris) of Cities Service (now CITGO Oil) stock for $38 per share.   His lack of diversification would follow him through life.   The stock fell to $27 and then rose to $40 when he sold it, however he did miss out, after another few years it went to $202.   Buffett considers this an early "patience in investing" lesson.

1943 – Age 13

Buffett files his first tax return deducting $35 for his bike, a work expense.

1945 – Age 15

Buffett sells Washington Post newspapers making $175/month, saves $1200, and buys 40 acres of farmland in Omaha, Nebraska.

1947 – Age 17

Buffett and friend Donald Danly start Wilson Coin Operated Machines.   The business buys a pinball machine for $25 and puts it in a barbershop.   Wilson Coin makes Buffett and Danly $50/week.   Within months they own three machines and a year later sell Wilson for $1200.   Buffett does his and Wilson's tax returns.  

1949-1954 – Age 19 to 24

Buffett's savings reaches $9800, and he studies under Benjamin Graham and Columbia University.   Buffett was willing to work for Graham for free but was not offered a job.  

Buffett begins playing the ukulele which he still plays today.

Buffett marries Susan Buffett in 1952 and remained married till her death in 2004

First children Susan and Howard are born in 1953 and '54, with youngest Peter following in 1958  

Buffett returned to Omaha and purchased an unsuccessful Texaco station.   He also works as an investment salesman at his father's brokerage firm, Buffett-Falk & Company.

In 1954, Benjamin Graham calls Buffett and offers him a job for $12,000 a year.   During this period, Buffett also works closely with Walter Schloss.

1956 – Age 26

Buffett's wealth has grown to $140,000.   Graham decides to retire and close his business.

Buffett returns to Omaha on May 1 st and opens Buffett Associates Ltd. Seven family members and friends invest $105,000, and Buffett invests $100k.

1957 – Age 27

From his home, Buffett creates and manages five more partnerships.

1958 – Age 28

After three years, Buffett has doubled the partner's money.

1959 – Age 29

Buffett meets Charlie Munger through a mutual friend Edwin Davis at a dinner.   Munger, who Buffett to this day thinks is more intelligent than himself, will become a lifelong friend and Vice-Chairman of Berkshire Hathaway.

1961 – Age 31

Buffett is now running seven partnerships worth a few million; Buffett Associates, Buffett Fund, Emdee, Dacee, Glenoff, Mo-Buff, and Underwood.

Sanborn Map Company accounts for 35% of the partnerships' assets .   He tells the partners that in 1958 Sanborn was $45 per share when its investment portfolio value alone was at $65 per share, undervalued by $20 per share, thus providing a map business for nothing.   Buffett also reveals he earned a spot on Sandborn's board of directors.

Buffett makes his first million-dollar investment; Dempster – a windmill manufacturer.

1962 – Age 32

Buffett goes to New York to meet old acquaintances, find more partners and raise capital.   He collects a few hundred thousand dollars, and Buffett partnerships is worth $7.2 million.   Buffett merges all partnerships into one and names it, Buffett Partnerships Ltd.

Munger introduces Buffett to the CEO of Dempster, Harry Bottle, who turned the company around by cutting costs, laying off workers, and generating cash.   Buffett notices Berkshire Hathaway selling for $8/share and begins buying aggressively.

1963 – Age 33

Buffett sells Dempster for a gain of $2.3 million, three times the invested amount.

Buffett continues purchases of Berkshire for $14.86/share; the company had a working capital of $19/share, not including the value of fixed assets.   Buffett Partnership becomes the single largest shareholder of Berkshire Hathaway.

1964 – Age 34

Because of involvement in the salad oil scandal, American Express share prices fall to $35.   Buffett seeing an opportunity, buys 5% of the company.

1965 – Age 35

After a meeting with Walt Disney, Buffett invests $4 million in Walt Disney Corp., almost 5% of the company.   Buffett takes complete control of Berkshire Hathaway and names Ken Chase as CEO.

1966 – Age 36

Buffett closes the Partnership to new investment, stating, "unless it appears that circumstances have changed (under some conditions added capital would improve results) or unless new partners can bring some asset to the partnership other than simply capital, I intend to admit no additional partners to BPL."

Berkshire buys into Baltimore department store, Hochschild-Kohn.

Buffett's holdings in the Partnership are now worth approximately $6.8 million.

1967 – Age 37

Buffett Partnership now controls 59.5% of Berkshire Hathaway.   Berkshire pays a 10 cent dividend, the first and last it has ever paid.

The Partnership is now worth $65 million. Buffett's share is worth $10 million.   Buffett informs partners that in the current bull market, he is unable to find suitable investments.

Buffett briefly considers leaving investing to pursue other interests.

American Express stock hits $180/share; a $20 million profit on a $13 million investment.

Berkshire Hathaway buys into National Indemnity Insurance and National Fire and Marine Insurance Company for $8.6 million.

1968 – Age 38

The Partnership is now valued at $104 million.

1969 – Age 39

Berkshire acquires Sun Newspapers and Blacker Printing Company (Publishing), as well as Rockford Bank and Illinois National Bank (Banking).

Buffett chooses to close the Partnership and liquidate the assets to its partners, recommending that they:

• Consider joining Bill Ruane's Sequoia Fund
• Take the cash
• Take shares in Berkshire Hathaway that Buffett now controls

Between 1957-1969 Buffett Partnership annual returns averaged 31.6%, and his stake grew to $25 million.

1970 – Age 40

The Buffett Partnership is dissolved, and assets are divested.

1972 – Age 42

Via the Blue Chips Stamp Company, Berkshire aquires See's Candies (Chocolates) and Wesco Financial Corp (Financial Services).

1973 – Age 43

Berkshire begins buying stock in the Washington Post Company (Publishing), becoming a member of the board of directors and close friends with Katharine Graham, the company and its flagship newspaper's controller.

1974 – Age 44

With falling stock prices, Berkshire Hathaway's portfolio value also falls; with it, Buffett's net worth falls by more than 50%.

1975 – Age 45

Buffett merges Berkshire with Diversified, the firm controlled by Charlie Munger.

Munger gets 2% of Berkshire's stock and becomes its vice-chairman.

1976 – Age 46

With its stock price just above $2, Berkshire invests $4 million in GEICO (Insurance) and continues to do so until 1996, when Berkshire will acquire the company.

Berkshire's subsidiary, National Fire and Marine Insurance acquires Central Fire & Casualty and Cypress Insurance companies.

1977 – Age 47

Berkshire invests $32.5 million in the Buffalo Evening News (Publishing).   He is also investing in Knight-Rider (Publishing), Interpublic and Ogilvy-Mather (Advertising), and Kaiser Industries (Metals and Mining).

1978 – Age 48

Berkshire invests in ABC Broadcasting (TV Network) and SAFECO (Insurance).

1979 – Age 49

Berkshire begins buying shares in General Foods (Foods), Affiliated Publications and Media General (Publishing), Handy & Harman (Metals and Mining), FW Woolworth (Retail), Precision Steel Warehouse (Materials and Construction), and Amerada Hess (Oil).

Berkshire is trading at $290/share, Buffett's net worth is now approximately $100 million, and he receives a $50k/year salary.

1980 – Age 50

Berkshire continues buying stock in RJ Reynolds (Tobacco), ALCOA (Metals and Mining), Cleveland-Cliffs Iron (Metals/Mining), Pinkerton (Professional Services), National Detroit (Banking), Times Mirror (Publishing), and National Student Marketing (Financial Services).

1981 – Age 51

Berkshire buys GATX (machinery) and Arcata (Forest products/Paper).

1982 – Age 52

Berkshire invests in Time (Publishing), and Crum & Forster (Insurance).

Buffalo Evening News has no local competition, and its name is changed to the Buffalo News, earning $19 million its first year and by the late eighties, $40 million a year.

1983 – Age 53

Berkshire merges with Blue Chip Stamps, a majority-owned Berkshire subsidiary.

Berkshire purchases Nebraska Furniture Mart (Furniture) for $60 million.

Berkshire's stock price starts 1983 at $775, ending the year at $1310.   The portfolio is worth $1.3 billion, and Buffett's net worth reaches $620 million, making the Forbes richest list for the first time.

1984 – Age 54

Berkshire purchases $139 million in Washington Public Power Supply System bonds, invests in Exxon (Oil) and Northwest Industries (Diversified).

1985 – Age 55

Buffett helps merge ABC TV and Capital Cities (Communications).   Buffett is forced to step down from the Washington Post's board; legislation prohibits simultaneously sitting on the Capital Cities and Washington Post boards.

Berkshire purchases Scott and Fetzer (Kirby vacuums and World Book Encyclopedia), Beatrice (Food), and Fecheimer Brothers (Uniforms), and closes its textile business.

1986 – Age 56

Berkshire purchases Fechheimer Brothers and invests in Lear Siegler (Aerospace)

Berkshire's stock price passes $3,000.

1987 – Age 57

Berkshire purchases 12% of Salomon Brothers (Investment Bank).

Berkshire loses 25% of its value ($4,200 to $3,100) on Black Monday, and Buffett's wealth falls by $320 million.

1988 – Age 58

With $1.2 Billion, Berkshire begins buying Coca-Cola, gaining a 7% stake.

Berkshire buys Freddie Mac.

1989 – Age 59

Berkshire acquires Borsheim's (Jewelry) and Gillette (Toiletries).   Berkshire's stock rises from $4,800 to $8,000/share, and Buffett's wealth reaches $3.8 billion.

1990 – Age 60

Berkshire purchases 10% of Wells Fargo (Banking).

1991 – Age 61

Berkshire acquires H. H. Brown (Footwear) and begins purchasing M&T Bank (Banking), and Guinness (Beverages).

Buffett serves as Solomon Brothers CEO following a treasury bond trading scandal.

1992 – Age 62

Berkshire acquires Central States Indemnity of Omaha (insurance) and becomes General Dynamics (Aerospace) largest shareholder.   Buffett continues serving as Chairman at Solomon Brothers.

Berkshire's stock passes $10,000/share.

1993 – Age 63

Berkshire acquires Dextor (Footwear), later considered a bad purchase.

1994 – Age 64

Robert Hagstrom's The Warren Buffett Way is published, and it becomes a bestseller.

Berkshire invests in Gannett (Publishing), PNC Bank, and McDonald's.

1995 – Age 65

Berkshire acquires Helzberg's Diamonds (Jewelry) and R. C. Willey (Furniture).

For the first time, Berkshire Hathaway's annual meeting is held in Omaha's Holiday Convention Center, and the stock passes $25,000 per share.

1996 – Age 66

Berkshire acquires Flight Safety International (Aviation training) and the remaining stake in GEICO.

Wesco Financial, a Berkshire subsidiary, acquires Kansas Bankers Surety(Insurance).

1997 – Age 67

Berkshire acquires Star Furniture and International Dairy Queen (restaurants), also investing in Travelers (Insurance).   Buffett makes an investment mistake in US Airways.  

Buffett invests 2% of his portfolio in silver.

1998 – Age 68

Berkshire purchases General Re (Insurance) and Executive Jet (Aviation), which is renamed NetJets.

1999 – Age 69

Berkshire acquires Jordan's Furniture, a Massachusetts furniture powerhouse, and parts of utility company MidAmerican Energy Holdings.

2000 – Age 70

Berkshire acquires several companies:

• Ben Bridge (Jewelry)
• CORT, the leading national "rent-to-own" furniture company
• Justin Industries (Acme Building)
• Shaw Industries, the world's largest manufacturer of broadloom carpets
• Benjamin Moore, the paint manufacturer, founded in 1883.

Carson Group names Buffett the 20 th century's top money manager, over Peter Lynch and John Templeton.

From 1990 to 2000, Berkshire outperforms the Dow Jones 1580% to 280%.

2001 – Age 71

Berkshire's acquisitions continue:

• Johns Manville Corp (building products)
• MiTek, steel connector products, design engineering software and ancillary services for the global building components market
• XTRA Corporation (transport containers)
• H&R Block and Moody's Corporation (Financial Services)

9/11 terrorist attack insurance claims total $2.28 billion; Buffett apologizes to shareholders for failing to foresee the risk and improperly priced insurance coverage.

2002 – Age 72

Berkshire acquires Albecca and Larson-Juhl (picture frames), Fruit of the Loom and Garan (clothing), CTB (heavy equipment), and The Pampered Chef (kitchenware).

Berkshire and other investment groups purchase $500 million in Level 3 Communications bonds; a former Omaha fiber network company.

Buffett enters an $11 billion forward contracts deal of US dollars against other currencies; by 2006, these contracts had gained over $2 billion.

2003 – Age 73

Berkshire acquires Clayton Homes (housing), McLane (wholesale distributor), and Burlington Industries (clothing and furnishings).

2004 – Age 74

Bill Gates is elected a Berkshire Hathaway director.

2005 – Age 75

Berkshire acquires Medical Protective (Medical malpractice insurer), Forest River (leisure vehicles), Pacific Corp (Power Distribution) paying 9.4 Billion, and Anheuser-Busch (Beverages).

Berkshire subsidiary, Shaw Industries, buys stock in Honeywell Inter.  

The insurance businesses lose about $2.5 billion from Hurricane Katrina, but Berkshire records a gain of $5.6 billion.

Berkshire stock passes $90,000/share.

2006 – Age 76

Buffett announces he will give away more than 80% of his $44 billion fortune to five foundations, the most significant contribution going to the Bill and Melinda Gates Foundation

2006's acquisitions:

• Business Wire (media distribution)
• Russell Corporation (apparel)
• Brooke Sports (apparel)
• 80% of Iscar Metalworking Companies (IMC) valuingIMC at $5 billion.
• Applied Underwriters (insurance)
• TTI Inc (electronic components)
• Southern Energy Homes (utility)

Berkshire stock passes $100,000/share.

Buffett marries longtime companion Astrid Menks.

2007 – Age 77

In his letter to shareholders, Buffett announces that he is seeking a young successor/successors to run Berkshire, Lou Simpson, who manages investment via GEICO, had been slated but is only six years Buffett's junior.  

2007's acquisitions:

• Boat America Corporation, which owns Seaworthy Insurance and controls the US Boat Owners Association
• Jewellery manufacturers Bel-Oro International and Aurafin LLC merge into Richline Group.
• 60% of Marmon Holdings (electrical components holding company).
• SE Homes (construction)

2008 – Age 78

Berkshire buys Marmon Holdings and Coachmen Industries, joining with Forest River (leisure vehicles), as well as buying $4.4b in bonds from Mars Inc. (food) and makes $680m in profit.

2009 – Age 79

Berkshire subsidiary, Shaw Industries, acquires Sportexe (synthetic turf company).

Berkshire acquires Cavalier Homes (home construction)

An investment and derivatives $5 billion "paper" loss triggers a first-quarter loss for Berkshire, its most significant since the 9/11 attack, however earnings rebound later that year.

2010 – Age 80

Berkshire invests in Munich Re (Insurance) and buys Burlington Northern (railroads) for $44 billion; as a result, Berkshire enters the S&P 500, replacing Burlington Northern-Santa Fe.

Berkshire subsidiary, McLane, acquires Kahn Ventures.

2011 – Age 81

Berkshire acquires Lubrizol $9.7 billion(Chemicals).

2012 – Age 82

Berkshire invests in IBM (Tech services), which Buffet will eventually regret, and acquires Omaha World-Herald (Publishing).

Buffett is diagnosed with stage I prostate cancer.

2013 – Age 83

Berkshire buys a 50% stake in H. J. Heinz Company (Food) for $28 billion and oil pipeline, Phillips Specialty Products.

2014 – Age 84

Bershire buys battery maker Duracell from Procter & Gamble for $4.7 billion deal, completes in 2016

2015 – Age 85

Berkshire buys a large holding in Phillips 66(which Phillips will eventually buy some back for $3.2 billion due to regulatory issues) and begins purchase negotiations of Precision Castparts (aerospace/industrial goods)

2016 – Age 86

Purchases Precision Castparts and Berkshire's largest dollar purchase ever at $37 Billion; in 2021 Buffett said he paid too much, having to fire 10,000 employees in 2020.

2017– Age 87

Buffett changes his position on tech and purchases 76.7 million shares of Apple stock (he considers it a consumer products company now), also trading some warrants for 700 million shares of Bank of America, becoming its largest shareholder and an investment gain of more than $14.2 billion in just over six years.   Berkshire also sold much of its tech investment a large portion of its IBM stock.

2018– Age 88

Though having $108 billion in cash and desire, no major acquisitions were made in 2018, but Berkshire purchased $43 billion in public securities, primarily Apple.

2019– Age 89

Berkshire has built its cash supply to over 122 billion and still made no major purchases.   Selling a quantity of its Apple, Serius XM, and about 10% of its Wells Fargo shares.

2020 – Age 90

Berkshire started the year owning 48 securities with a market value of $251 billion.

Having grown its cash supply to $137 billion, Berkshire makes its biggest acquisition since 2016, purchasing Dominion Energy's natural gas storage and transmission business for $10 billion.

2021 so far

Since the year 2000 Berkshire A-shares have gained 620.8% are now trading over $415,000,this is compared to the S&P500, which has gained 211%, and the Nasdaq up 397% in the same period.

Buffett's wealth stands at $104 billion, up $60 billion from when he agreed to give 80% of it away in 2006, his total charitable giving has reached $41 billion and he has stated that he will be giving 99% of it away by his death.  

Buffett has stated that Berkshire has still not officially found a CEO replacement for himself and that picking the wrong person is the worst thing that could happen to the company.  

However, at the most recent annual meeting, Charlie Munger made an offhand comment that Greg Abel, 58-year-old Vice-Chair of Non-Insurance Business Operations, is Warren Buffett's successor.   No timing for a transition has been divulged, until then, the Oracle of Omaha, elder statesmen of Berkshire, Warren Buffett, will remain at the helm.

Buffett's story still continues...

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Quick start video

Warren Buffett Says His Company Wouldn't Have Been The Same Without This IIT Grad

In his latest annual letter to shareholders, investment maestro Warren Buffett heaped praises on long-time Berkshire Hathaway employee Ajit Jain .

Talking about Jain — who heads the company’s insurance operations — Buffett said “that our position would not be what it is if Ajit Jain had not joined Berkshire in 1986.” He added that before that lucky day, he was struggling to build the company’s insurance business.

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Buffett also mentioned that Jain’s accomplishments since becoming part of Berkshire Hathaway have been bolstered by a team of immensely skilled insurance executives.

Jain, who hails from Odisha, completed his BTech at IIT Kharagpur before embarking on his career journey. Initially, he worked at IBM in India before pursuing further studies in the US, where he obtained his MBA from Harvard. He joined Berkshire Hathaway in 1986.

Buffett has commended Jain’s contribution to the company several times in the past as well. He had once famously said, “If Charlie (Munger) and I and Ajit are ever in a sinking boat — and you can only save one of us, swim to Ajit.”

Read next:   This 89-Year-Old Grandmother From Ahmedabad Turned Her Crocheting Passion Into A Global Business

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel .

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Warren Buffett Warns Of 'Casinolike' Behavior In Markets As Coinbase Crashes Because Of 'Heightened Traffic' From Its 'Robinhood Moment'

Warren Buffett cautioned he's seeing signs of excess in markets, likening their price action to a casino.

"For whatever reasons, markets now exhibit far more casinolike behavior than they did when I was young," Buffett told Fortune magazine.

While he might've been talking about stock markets, even more volatility in the crypto markets caused Coinbase Global Inc. (NASDAQ:COIN) to be temporarily unable to handle the load.

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For a brief time, many Coinbase users saw zero account balances and were unable to buy or sell cryptocurrencies.

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The chaos reminded some traders of Robinhood Market Inc. 's (NASDAQ:HOOD) 2021 fiasco caused by the unexpected rise in meme stocks such as GameStop Corp. (NYSE:GME).

A popular Reddit post titled "Dear Coinbase – Enjoy your Robinhood Moment" expressed disappointment in the similarities. 

While the incident caused Coinbase's stock to dip slightly, it's still up about 215% over the past year, largely because of the rise of Bitcoin and the increased trading fees generated from the cryptocurrency.

The increased trading fees that both Coinbase and Robinhood have achieved are likely all part of what Buffett was voicing his displeasure over.

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Buffett's late business partner Charlie Munger bluntly assessed Robinhood in 2021, saying, "I think it's just God awful that something like that brought investments from civilized men and decent citizens. It's deeply wrong. We don't want to make our money selling things that are bad for people."

Buffett's Berkshire Hathaway Inc. (NYSE:BRK) might not have had the same gains as Coinbase over the past year, but it still achieved a roughly 33.3% gain over the past year.

One benefit to owning Berkshire has been its relatively low volatility compared to the more speculative Coinbase as well as its proven staying power over time.

While times have changed, Buffett believes the speculative behavior of investors hasn't, saying, "Today's active participants are neither more emotionally stable nor better taught than when I was in school."

Buffett bought his first stock in 1941, a full 71 years before Coinbase was founded.

Who will have better returns over the next 71 years is sure to be a debate.

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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

This article Warren Buffett Warns Of 'Casinolike' Behavior In Markets As Coinbase Crashes Because Of 'Heightened Traffic' From Its 'Robinhood Moment' originally appeared on Benzinga.com .

Warren Buffett says the stock market is increasingly ‘casino-like’—and young investors need to remember this ‘one fact of financial life’ to avoid the mess

Berkshire Hathaway CEO Warren Buffett shared a moving tribute to his fallen friend and right-hand man Charlie Munger in his annual shareholder letter over the weekend. The Oracle of Omaha lauded Munger as the “architect” of Berkshire’s success, eulogizing the “ abominable no-man ” by discussing some of his favorite whipping posts—including his comparison of the modern stock market to a casino.

“For whatever reasons, markets now exhibit far more casino-like behavior than they did when I was young,” Buffett wrote, adding that “though the stock market is massively larger than it was in our early years, today’s active participants are neither more emotionally stable nor better taught than when I was in school.”

Buffett’s words of caution were definitely a throwback to some of Munger’s favorite lines. Throughout his more than 75-year career, Munger argued that there were two types of people who buy shares in the stock market: investors and speculators. The investors—who are, above all, disciplined, hard-working, and thoughtful when buying assets—were always Munger’s people. But the speculators—those who seek nothing more than a quick buck without care for the intrinsic value of what they’re buying—well, Munger really didn’t like them much.

“They love gambling, and the trouble is, it’s like taking heroin,” he said in an April 2022 interview with Berkshire Hathaway investment officer Todd Combs. “A certain percentage of people when they start just overdo it. It’s that addictive. It’s absolutely crazy, it’s gone berserk. Civilization would have been a lot better without it.”

Like Munger, Buffett fears that too many modern investors have become entranced by speculative investing. Rather than digging into Securities and Exchange Commission (SEC) filings to find the best possible business to invest in, too many investors, particularly young investors, are simply buying stocks that are trendy, hoping someone else will pay more for them a few months, days, or even hours down the line. What or who does Buffett blame for this rise in “casino-like” behavior in the markets? Well, the democratization and gamification of trading is certainly not helping. As the billionaire put it: “The casino now resides in many homes and daily tempts the occupants.”

Becoming a stock market ‘casino’

Part of the reason the stock market is becoming increasingly “casino-like,” according to Buffett, is simply that buying and selling stock has never been easier—or more fun—due to the rise of online trading applications. The SEC is happy about the first part of that sentence, but not so much the second. Here’s how SEC Chair Gary Gensler put it in a statement in 2021 after launching an investigation into the gamification of trading applications:

“While these new technologies can bring us greater access and product choice, they also raise questions as to whether we as investors are appropriately protected when we trade and get financial advice…In many cases, these features may encourage investors to trade more often, invest in different products, or change their investment strategy.”

Like Gensler, Buffett is worried that the gamification of trading is leading to an increase in speculators in the market, and in this modern era of connectivity, the Berkshire CEO worries that could lead market “panics” to happen more rapidly.

“Speed of communication and the wonders of technology facilitate instant worldwide paralysis, and we have come a long way since smoke signals,” he warned. “Such instant panics won’t happen often—but they will happen.”

Remember this key ‘fact of financial life’—and you’ll avoid gambling in the market

For the speculators that are using the stock market like a casino, Buffett had one main tip: Remember who is really making money from your gambling—the House.

“One fact of financial life should never be forgotten,” he wrote. “Wall Street – to use the term in its figurative sense – would like its customers to make money, but what truly causes its denizens’ juices to flow is feverish activity.”

Modern brokerage firms, at times, entice investors into stocks or complicated derivatives with new and fancy features on their trading apps. But they aren’t doing it to help the average retail investor, they’re doing it because they make money from fees on every trade. That means the more trades, the better it is for the House, even if that’s not true for investors. 

During periods where more of the general public gets interested in stocks, Buffett explained, “whatever foolishness can be marketed will be vigorously marketed – not by everyone but always by someone.”

The Berkshire CEO noted that when the scene then “turns ugly,” and speculators lose money during a market meltdown, they shouldn’t expect a helping hand—or justice—either.

“The politicians then become enraged; the most flagrant perpetrators of misdeeds slip away, rich and unpunished; and your friend next door becomes bewildered, poorer and sometimes vengeful,” he wrote. “Money, he learns, has trumped morality.”

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Billionaire security: Behind the scenes with Warren Buffett's bodyguard

Warren Buffett’s bodyguard punched me in the head, and it hurt.

The bodyguard, Dan Clark, didn’t mean for it to hurt, he was just demonstrating a fighting move called the brachial stun. That’s a strike to the side of the neck using a chopping motion with the hands — but when Clark hit me with it in a slow-speed demonstration, the sudden burst of force whipped my whole head to the right, crashing my teeth together so hard that I thought I would lose a filling.

That’s what Dan Clark is like — even his demonstrations are intense.

He’s the kind of guy who throws around phrases like the “muay Thai clench with a double knee strike,” and who, when he emails you to invite you to his training session, reminds you politely to bring a cup. 

All of it — the gym, the training and especially the punch — combine to send a clear message: Don’t mess with Buffett, or any of Clark’s other clients. And that’s kind of the point.

The gym we’re standing in is attached to the offices of his company,  Clark International , in Omaha, Neb. Clark, with his square build and close cropped red hair, looks every inch the former Omaha police officer he once was. 

But then he met  Warren Buffett , the billionaire investor known as the Oracle of Omaha, and in 1995 became Buffett’s go-to guy for personal security. When you see Buffett walking the floor at his annual investor conference, Clark is usually positioned at Buffett’s side — keeping the crowd from surging too close to the elderly billionaire, and making sure the camera crews don’t trample anybody.

Such close proximity to an icon of American business inspired an entrepreneurial instinct in Clark, so he founded his own security company. Today, Clark International provides security services for high profile people including former Alaska Governor  Sarah Palin  and actor  George Clooney , along with a list of others he declines to name.

We flew to Nebraska to spend some time with him this spring, during a two-day executive training session Clark had organized for dozens of full- and part-time security guards. Only a handful are full-time employees. The rest are contractors on call for big jobs that require more bodies on the ground.

The men — and one woman — clearly respect the man who’s training them, occasionally clobbering them, and who may just sign their next paycheck. Two or three are veterans of the mixed martial arts fighting circuit. But even they call Clark “sir.”

I’ve never even seen a machine gun fired in person before. But Clark’s team has access to the same outdoor gun range that the Omaha National Guard SWAT team uses, and they’ve rolled an old car onto the dirt strip in front of the targets.

They’re working with M-4 carbines, which are a little shorter and lighter version of the military M-16. Those are handy features for security guards, because they train to be able to use them instantly from inside the front seat of a car, responding to an ambush attack so quickly that there’s no time to even get out of the car and take up a firing stance.

I’m sitting in the back seat as two of Clark’s men begin, blasting away with their machine guns from the front seat, through the windshield, and onto the targets. It’s hot, and its noisy. Shell casings fly out of the M-4s. One of them hits me in the head, and I’m a little surprised at how hot it is. When it’s all over, I count: one of the men fired 15 rounds, but with such a steady hand that there are only three holes in the windshield.  

The training sessions start early and go late. Over the course of the two days, we watch as Clark’s team practices formations for guiding VIPs through crowds, conduct more weapons training and practice advanced driving techniques to avoid roadside ambushes. They let me fire a Glock .40, a pistol that is lighter in the hand than I thought but has a more powerful kick than I was expecting.

For the last exercise, they take turns deliberately smashing into a parked car in a maneuver designed escape a roadside trap. The technique involves crashing the right front of the escaping car into a spot just behind the right rear wheel well of the blocking car, which, if you do it at a high enough speed, causes the blocking car to spin out of the way. They do this again and again, switching drivers in the lead and follow-on cars each time so that everyone gets a chance to practice the move. CNBC producer Kelly Lin has affixed small portable cameras to both cars to record the moments of impact, and somehow they survive. But the lead car, an old white Cadillac STS, is rendered undrivable.

Clark’s men say they’ll bring it to the scrap yard the next day. The way my neck tightens up, I know just how that car feels.

Below, CNBC's Eamon Javers traveled the country, talking to some of the world's leading experts in billionaire security, to find out how they protect yachts, mansions and, most importantly, their clients.

This story previously appeared on CNBC.

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