Warren Buffett is the world's third-richest man — see how the notoriously frugal billionaire spends his fortune
- Warren Buffett's estimated net worth is $84.9 billion.
- But you wouldn't know the investor is America's third-richest man by his frugal lifestyle.
- Buffett lives modestly and is one of the world's most generous philanthropists, opting to give away most of his billions to charity.
Warren Buffett's net worth is nearly $85 billion, keeping him in the spot as the world's third-richest person, according to Forbes' real-time net worth tracker.
Now 88, Buffett's estimated net worthstands at $84.9 billion - but you wouldn't know it by Buffett's frugal ways.
Still living in the house he bought in the 1950s and driving an equally modest car, Buffett prefers to keep and grow his money rather than take it out of the bank. Not one for lavish purchases, he spends relatively little of his billions - except when it comes to philanthropy.
Buffett is regarded as one of the most generous philanthropists in the world, having donated more than $46 billion since 2000.
However he uses his money, not much is spent on himself. See how Buffettspends - or doesn't spend - his billions.
Warren Buffett has a net worth of $84.9 billion, making him the world's third richest person.
Source: Forbes
The CEO of Berkshire Hathaway began building his wealth by investing in the stock market at age 11.
Source: Forbes
As a teenager, he was raking in about $175 a month by delivering "The Washington Post" — more than his teachers (and most adults).
Source: Business Insider
He had amassed the equivalent of $53,000 by the time he was just 16.
Source: Business Insider
But 99% of his wealth was earned after his 50th birthday.
Source: Business Insider
He reportedly earns a salary of $100,000 at Berkshire Hathaway.
Source: GOBankingRates
And in 2013, Buffett made on average $37 million per day — more than what Jennifer Lawrence made the entire year.
Source: MarketWatch
His wealth is greater than the GDP of Uruguay.
Source: Business Insider
But you wouldn't know Buffett is a billionaire by the way he spends his money.
He previously told CNBC and Yahoo Finance's "Off the Cuff" that he's "never had any great desire to have multiple houses and all kinds of things and multiple cars."
Source: CNBC
Buffett lives in a modest home in Omaha, Nebraska, which he bought for $31,500 in 1958. Adjusted for inflation, it's about $276,700 in today's dollars.
Source: Business Insider
As of 2017, it was worth an estimated $652,619, what he calls the "third-best investment he's ever made."
Source: Business Insider
It's 6,570 sq. feet and has five bedrooms and two-and-a-half bathrooms.
Source: Business Insider
It's also guarded by fences and security cameras.
Source: Business Insider
In 1971, Buffett purchased a vacation home in Laguna Beach, California, for $150,000.
Source: Business Insider
Part of a gated community called Emerald Bay, it's walking distance from the beach.
Source: Business Insider
According to the listing, the home comes with a $9,264 annual association fee, which grants amenities like nearby access to a pool and spa, picnic area, playground, and tennis court.
Source: Business Insider
It has 3,500 square feet of living space and six bedrooms. Buffett has renovated it since his initial purchase.
Source: Business Insider
Each bedroom has its own en-suite bathroom.
Source: Business Insider
It's secluded and has plenty of wide-open windows for views of the sea.
Source: Business Insider
It's also secluded and simply decorated, mirroring Buffett's simple spending habits.
Source: Business Insider
He put it on the market for $11 million in early 2017, but cut it down to $3 million later that year.
Source: Business Insider
After nearly two years on the market, it finally sold in October 2018 for $7.5 million.
Source: Business Insider
Buffett also has a modest set of wheels. He previously drove a 2006 Cadillac DTS.
Source: GOBankingRates, US News & World Report
In 2014, he replaced it with a Cadillac XTS, which has an original starting price of $44,600.
Source: GOBankingRates, US News & World Report
He also buys beat-up cars — like hail-damaged cars — at reduced prices and is reluctant to replace them, daughter Susie Buffett said in a BBC documentary.
Source: GOBankingRates
"The truth is, I only drive about 3,500 miles a year so I will buy a new car very infrequently," Buffett once told Forbes.
Source: Forbes
He once auctioned his car for $73,200.
Source: Reuters
His Lincoln Town Car once had a license plate that read "THRIFTY."
Source: The Wall Street Journal
Buffett doesn't spend much on technology, at least when it comes to his mobile phone. He still uses a flip phone instead of a smartphone.
Source: Business Insider
Buffett isn't a fan of high-end designer suits. He only wears suits — of which he owns about 20 — made in China by designer Madame Li.
Source: CNBC
Buffett tops off his style with an $18 hair cut.
Source: Marketwatch
Buffett eats the same thing every morning for breakfast — McDonald's. He spends no more than $3.17 on his order.
Source: Business Insider
He also likes to treat his buddy Bill Gates to lunch at McDonald's — which he's paid for with coupons in the past.
Source: GOBankingRates
Buffett is also a thoughtful friend without spending a lot of money. He picks Gates up at the airport, calls him, and sends him news clippings via snail mail.
Source: GOBankingRates
Buffett also dines at the modest Gorat's steakhouse, his favorite. The menu ranges from $3 to $41.
Buffett is also a fan of Coca Cola; he has said he typically drinks five Cokes a day — so you can imagine he spends more on the beverage than the average person.
Source: GOBankingRates
Compared to other CEOs, Buffett doesn't spend a whole lot on his hobbies. He plays bridge for about 12 hours a week.
Source: Business Insider
Buffett also likes to hit the green for some golf — but he doesn't spend his money on fancy golf clubs.
Source: GOBankingRates
"I'm a member of every golf club that I want to be a member of […] I'd rather play golf here with people I like than at the fanciest golf course in the world," he once said in a Q&A.
Source: GOBankingRates
He also puts a lot of money toward books. He's said he has a "disgusting pile" of books by his chair, and he spends 80% of his day reading.
Source: Business Insider, CNBC
Buffett also loves to play the ukulele. Girls Inc of Omaha once hosted a ukulele concert as a benefit for Buffett, in which they earned $344.23 in donations.
Source: Reuters
He took the money and purchased 17 Hilo ukuleles for the group — but not without demanding a discount because he was buying in bulk.
Source: Reuters
He's even frugal when it comes to his kids — he fashioned a dresser drawer into a bassinet for his first born, Susie.
Source: GOBankingRates
For his second born, Howard G. Buffett, he borrowed a crib.
Source: GOBankingRates
Buffett once spent $100 to take a Dale Carnegie course on public speaking. It helped him propose to his wife, he said.
Source: Business Insider
The one thing Buffett has splurged on is a private jet. He told CNBC, it's "the only thing that I do that costs a lot of money."
Source: CNBC
But that wouldn't be possible without his wise investing strategies. While 99% of Buffett's net worth is tied to Berkshire Hathaway, he invests the other 1%.
Source: Forbes
He purchased shares in Wells Fargo "a long, long time ago," but it's unclear what his stake in the company is.
Source: Forbes
He also purchased 2 million shares, an 8% stake, in Seritage Growth Properties for a total estimated cost of $73 million.
Source: Forbes
He also owns an undisclosed amount of JPMorgan stock. He's said to be a fan of the bank's CEO, Jamie Dimon.
Source: The Motley Fool
But not all his investments have been wise — back in 1951, he bought a Sinclair gas station with a friend. The Texaco station across the street was more popular, and he lost $2,000 out of his $9,600 savings.
Source: Forbes
Buffett spends most of his billions on philanthropy; he's considered one of the most generous philanthropists in the world, having donated more than $46 billion to causes since 2000.
Source: CNBC
He teamed up with Bill and Melinda Gates in 2010 to form The Giving Pledge, an initiative that asks the world's wealthiest people to dedicate the majority of their wealth to philanthropy.
Source: Business Insider
In 2016, he donated $2.9 billion to various charities, including The Bill and Melinda Gates Foundation and the Susan Thompson Buffett Foundation, in honor of his late wife.
Source: Business Insider
Buffett, through the Susan Thompson Buffett foundation, has donated tens of millions to the Planned Parenthood Federation of America and the National Abortion Federation.
Source: Inside Philanthropy
He donated even more to the Bill and Melinda Gates Foundation in 2018 — around $2.6 billion worth of Berkshire Hathaway stock.
Source: FORTUNE
That same week, he donated about $800 million in Berkshire Hathaway stocks to the Susan Thompson Buffett Foundation, Sherwood Foundation, Howard G. Buffett Foundation, and NoVo Foundation.
Source: FORTUNE
Buffett only plans to leave his kids $2 billion each; the rest of his fortune will be donated to philanthropic causes. He once said he wants to leave his children "enough money so that they would feel they could do anything, but not so much that they could do nothing."
Source: The Washington Post
There is one thing money does buy for Buffett personally, he said in a CNBC interview: Freedom.
Source: CNBC
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