If the concept of bling had an opposite, it would be Warren Buffett.
The famously frugal investing guru eats one of two cheap McDonald’s breakfasts every morning, depending on the stock market’s performance, and buys a new car only when his daughter tells him his current model is “embarrassing.“
But the Oracle of Omaha’s most telling penny-pinching trait is right there in his nickname. Buffett’s home in Nebraska’s largest city is proof that the world’s most successful investor lives by the motto he preaches.
The Ultimate Longtime Local
In 1958, Buffett and his then-wife bought a 6,570-square-foot home with five bedrooms and 2.5 bathrooms in Omaha. He still lives there to this day.
He purchased the house 65 years ago for $31,500. With a cumulative inflation rate of 944.4%, that’s about $328,990.80 in today’s money.
Considering he’s the No. 5 richest person in the world with a personal fortune that Forbes estimates at $113.3 billion, that’s about 0.00029% of his total net worth.
Buffet Has Always Advocated for Responsible Homeownership
In a 2010 letter to his Berkshire Hathaway shareholders, Buffett wrote, “Home ownership makes sense for most Americans… All things considered, the third best investment I ever made was the purchase of my home, though I would have made far more money had I instead rented and used the purchase money to buy stocks.”
The two best investments were wedding rings.
He continued, “For the $31,500 I paid for our house, my family and I gained 52 years of terrific memories with more to come. But a house can be a nightmare if the buyer’s eyes are bigger than his wallet and if a lender — often protected by a government guarantee — facilitates his fantasy.”
So, What’s the Oracle’s Home Worth Today?
According to Zillow’s estimate, Buffett’s home at 5505 Farnam Street in Omaha is worth $1,372,200. That’s nearly 44 times what he paid for it in 1958 and more than four times the value of his purchase price when adjusted for inflation.
The home, of course, is off the market — and probably will be for the foreseeable future.
In 2009, Buffett told the BBC’s Evan Davis, “I’m happy there. I’d move if I thought I’d be happier someplace else. I’m warm in the winter, I’m cool in the summer, it’s convenient for me. I couldn’t imagine having a better house.”
What Are Buffett’s Other Real Estate Holdings?
In 2019, Buffett’s Berkshire Hathaway firm became the largest real estate company in America. Its founder, on the other hand, has a portfolio consisting of exactly one property — his primary residence in Omaha.
But even the Oracle once dabbled in the high life.
In 2018, the Orange County Register reported that Warren Buffett sold a 3,588-square-foot vacation home with ocean views in guard-gated Emerald Bay in California’s swanky Laguna Beach for $7.47 million. That was a steep discount from the original asking price of $11 million.
But don’t worry, the Oracle didn’t take a hit. He bought the mansion for $150,000 in 1971.