Warren Buffett Loves Owning An 'Expensive' Private Jet, But Feels 'Owning A Half-Dozen Homes Would Be A Burden' — Happiest In His 1921 Home
Warren Buffett is known for his value-driven approach to business and personal life. In 2006, he signed the Giving Pledge, promising to donate 99% of his wealth to charity.
This decision was outlined in a letter where Buffett reflected on his lifestyle choices and the value of possessions. In the letter he wrote, "Some material things make my life more enjoyable; many, however, would not. I like having an expensive private plane, but owning a half-dozen homes would be a burden." He continued the letter by adding, “Too often, a vast collection of possessions ends up possessing its owner,” he said, emphasizing the importance of quality friendships over material wealth. “The asset I most value, aside from health, is interesting, diverse and longstanding friends."
Buffett has lived in the same house since 1958 and stated that while he enjoys simplicity, the accumulation of excessive property can be overwhelming. Over the years, Buffett has mentioned the drawbacks to owning a home, claiming it can be a "nightmare" for buyers if their eyes are bigger than their wallets.
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Built in 1921, Buffett's only home is now valued at approximately $1.4 million, per Zillow. Warren Buffett has lived in this house for 66 years and expressed his affection for it. Despite acknowledging that renting and investing the initial $31,500 purchase price might have been more profitable, he remains content. "I'm happy there. I'd move if I thought I'd be happier someplace else," he stated during a 2009 interview with Evan Davis in "The World's Greatest Moneymaker."
Although he isn't keen on owning multiple homes, Buffett doesn’t shy away from real estate but rather approaches it with the same value-driven mentality he applies to all investments. In his 2014 Berkshire Hathaway annual letter, Buffett highlighted one of his most successful investments, which came from an unexpected tip in 1993. New York real estate mogul Larry Silverstein informed him about a promising property adjacent to New York University that was on sale by the Resolution Trust Corp following a burst real estate bubble.
Encouraged by Silverstein, Buffett invested $1 million into the property, which now hosts a series of retail shops on University Place between 8th and 9th Street in Lower Manhattan.
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According to Bloomberg reporters Betty Liu and Noah Buhayar in 2014, Buffett had seen substantial returns from this venture. Over the years, he received more than $1.5 million in special capital distributions, in addition to increasing regular payments from the property. Buffett explained the decision in his letter, noting that the “unleveraged current yield from the property was about 10%” and projected income growth from the leasing of several previously vacant stores — a prediction that materialized successfully.
Buffett also emphasized the strategic location of the property, stating, “The property’s location was also superb: NYU wasn’t going anywhere.” As a result of these factors, he explained that annual distributions from the investment exceeded 35% of the initial outlay.
Despite the significant financial returns, Buffett said in the letter that he has “yet to view the property” himself. Reflecting on their age and enduring partnership, Silverstein expressed his appreciation for Buffett through an email to Bloomberg, humorously noting, "Considering that we both are in our 80s, he thought it appropriate to express his gratitude while he could do it, and I could hear it!"
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This article Warren Buffett Loves Owning An 'Expensive' Private Jet, But Feels 'Owning A Half-Dozen Homes Would Be A Burden' — Happiest In His 1921 Home originally appeared on Benzinga.com
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