Ask Warren Buffett for investment advice, and you might expect the billionaire CEO to tout his longtime holdings of Coca-Cola or American Express. But according to Buffett, 93, his Berkshire Hathaway stake isn’t as impressive as the personal investments he’s made over the years.

The best of these is the home in Omaha he has lived in since 1958, when he and his late wife Susan bought it for $31,500 (about $336,700 in today’s dollars). But the real estate market is growing in value much faster than inflation — homes are now worth more than $1.4 million, According to Realtor.com, About 4,300% is Buffett’s signature return.

The world-renowned investor has long said the five-bedroom home is second only to his two wedding rings in terms of returns. “All things considered, the third best investment I’ve ever made was buying a home, although I’d make more money if I rented the home and used the money to buy stocks,” he wrote in a note. 2010 Berkshire Hathaway Letters to shareholders. Still, like many homebuyers, he’s not looking at it purely from a monetary standpoint. “I bought the house for $31,500 and my family and I have 52 years of great memories and more to come.”

Although Buffett is one of the richest men in the world, he is far less flashy than other billionaires. The financial press is full of stories about his fondness for McDonald’s breakfasts and a can (or five) of Coke. He once drove a car with “THRIFTY” on the license plate, according to wall street journal.

His home, near the offices of Berkshire Hathaway, is one of the best-known examples of his frugality. It is currently the only real estate in his personal portfolio.

“I wouldn’t trade it for anything,” Buffett said. Currently worth about $120 billionaccording to the Bloomberg Billionaires Index, told CNBC in 2017.

While this is his most famous residence, Buffett also lived in another Omaha residence a few years ago, according to wall street journal. Even more extravagantly, he also owns a beach house in Laguna Beach, California. Bought for $150,000 in the 1970s Sold in 2018 for about $7.5 million.

The U.S. real estate market has changed dramatically since Buffett bought a home in 1958. Today, housing prices across the country are skyrocketing, with interest rates more than doubling in just a few years. With limited inventory, finding a home to buy is harder than ever. For example, Omaha Median Home Price Today’s price is around $275,000, according to Redfin, well below national median But it was almost nine times what Buffett bought the house for.

As Buffett himself wrote in his 2010 letter, while buying a home can be stressful — and all that it represents in American society — renting may be wiser, depending on your personal financial situation. Even the ultra-wealthy can overextend if they’re not careful. That warning is all the more true today, when affordability has seriously deteriorated.

“If the buyer’s eyes are bigger than his wallet, and if the lender — usually
Protected by a government guarantee — furthering his fantasy,” Buffett wrote. “The social goal of our country should not be to put families in the homes they dream of, but to put them in the homes they can afford. “

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