'He should be everybody's hero': Warren Buffett and Bill Gates looked up to this fellow billionaire — 3 big lessons to learn from Charles Feeney
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Charles “Chuck” Feeney made much of his riches selling booze, cigarettes and perfume — and gave nearly all of it away before he died.
The co-founder of the Duty Free Shoppers Group (DFS Group), who died in October last year at age 92, fulfilled his pledge to donate the bulk of his $8 billion fortune long before his death.
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“Chuck Feeney is a remarkable role model, and the ultimate example of giving while living,” Bill Gates told Forbes back in 2012.
Berkshire Hathaway CEO Warren Buffett presented a Forbes 400 Lifetime Achievement Award to Feeney in 2014, calling him “my hero and Bill Gates’s hero. He should be everybody’s hero.”
Here are some finance lessons you can learn based on how Feeney managed his money.
Diversification
While building his massive fortune, Feeney didn’t just focus on his global network of duty-free airport stores — he was a prolific investor as well.
By the early 1980s, he was profiting from hotels, property and retail space, and he later invested in tech start-ups.
It wasn’t until 1996 that he sold his stake in DFS Group for a tidy $1.63 billion that went to his foundation, Atlantic Philanthropies — a deal that multiplied in value by investment returns later, according to the Wall Street Journal.
Feeney followed the golden rule — don’t put all your eggs in one basket — and grew his wealth by diversifying his investments.
You don’t have to be a pro to make the most of your investments like Feeney. With private equity firm First National Realty Partners* (FNRP) you can diversify your portfolio with grocery-anchored commercial real estate. Even better, you don’t have to do the legwork yourself, as FNRP’s team of professionals will manage every step of the investment process.
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Read more: Retire richer — why people who work with a financial advisor retire with an extra $1.3 million
Frugality
Feeney went from purchasing luxurious multimillion-dollar homes — including in London and the French Riviera — to renting a two-bedroom San Francisco apartment with his wife.
Like many folk of his ilk, he once spent his time cruising on yachts and private jets — but decided in his later years to cut back on spending and focus on his philanthropic efforts.
For Feeney, value was more important than flaunting his wealth. He flew coach because he wasn’t getting anywhere any faster by opting for a first-class ticket. He wore a $15 watch and used plastic bags in place of a briefcase.
“I just reached the conclusion with myself that money, buying boats and all the trimmings didn’t appeal to me,” he was quoted saying in a 2007 biography about his life, The Billionaire Who Wasn't.
Feeney’s modes of saving are a great place to start, but making sure you’re putting the money you save by living a frugal lifestyle in a place where it can grow is even more important.
By opting for a high-yield savings account you could earn returns of more than 4%, while the U.S. Bank's standard savings APY is 0.01%.
For a streamlined look at what high-yield savings account is best for you, you can check out our guide to the Best High-Yield Savings Accounts of 2023 to see which is the best place to grow your savings.
Feeney was also intentional with his spending, leaving enough funds behind for his investments and donations.
Of course, spending money is inevitable no matter how frugal you are. But when you do so while using a tool like Acorns* — an automated savings and investment app — you can make the most out of your spending.
When you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar and places the excess into a smart investment portfolio.* This way, even the most essential spending translates to money saved for the future.
Charitable giving
Once dubbed “the James Bond of philanthropy” by Forbes, Feeney is perhaps best known for his charitable giving — despite his attempts to hide it for many years.
Feeney donated to a range of causes, including AIDS relief in South Africa, Operation Smile’s free surgeries for children with cleft lips and palates and earthquake relief in Haiti.
"People used to ask me how I got my jollies, and I guess I'm happy when what I'm doing is helping people and unhappy when what I'm doing isn't helping people,” Feeney told Forbes.
There are potential financial benefits to charitable giving as well come tax time, as you may qualify for a tidy deduction on your next return.
If you’re looking for help putting together a financial plan that includes charitable giving, try WiserAdvisor*.
WiserAdvisor is an online platform that connects you to vetted financial advisers. After filling in some information about yourself and your finances, WiserAdvisor matches you with two to three registered financial advisers* who are best suited to help you with your financial goals.
With their professional guidance, you can get a grasp on how best to include charitable giving in your budget and long term plans, as well as solidify your financial future as a whole.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
