Rich Dudes│How Warren Buffett’s Net Worth Went From $10K to $114B
Updated May 19, 2023 at 5:56 pm
Self-made billionaire Warren Buffett made a name for himself as the “Oracle of Omaha.” Here’s a breakdown of Warren Buffett’s $114 billion net worth and investment portfolio.
Warren Edward Buffett AKA “The Oracle of Omaha” is a highly successful investor, widely recognized for his long-term investment strategies.
Warren Buffett’s net worth sits at $114 billion—despite his immense wealth, he maintains that money cannot buy happiness and pledged to donate 99% of his fortune to charity through the Buffett Foundation.
Born in Omaha, Nebraska, in 1930, Buffett began his investing journey at a young age. As a teenager, he made his first investment in the stock market, and by the age of 20, he had already accumulated a net worth of $9,800.
During the first quarter of 2023, Berkshire Hathaway was a net seller of stocks, selling $13.2 billion while buying only $2.8 billion—the company sold $10.4 billion more in stocks than it purchased.
Over the years, Buffett has become a revered figure in the investment world. People pay millions of dollars just to have lunch with him and get a peek into his mind. His annual shareholder letters—which provide insights into his strategies and philosophy—are eagerly awaited by investors worldwide.
In interviews and speeches, he has emphasized the importance of living a simple life and giving back to society. Through his foundation, he has donated billions of dollars to various causes, including education, health, and poverty alleviation.
In addition to his investment acumen and philanthropy, Buffett is known for his love of soda—he drinks multiple cans of Cherry Coke daily, which suggests he maintains a high energy level to continue making investment decisions.
Let’s capitalize on that caffeine rush to deep-dive into the investment portfolio of Berkshire Hathaway’s chairman Warren Buffett and how he managed to amass a $114 billion net worth and earn the “Oracle of Omaha” moniker.
Warren Buffett net worth at a glance
| Net worth | $114 billion |
| Born | August 30, 1930 |
| Nationality | American – Omaha, Nebraska |
| Became a millionaire at | 30 |
| Occupations | Businessman, investor, philanthropist, financier |
| Sources of wealth | Berkshire Hathaway, McLane, GEICO, Benjamin Moore, Duracell |
| Asset classes | Stocks, real estate, startups, automobiles, aviation |
How Warren Buffett made his money
Warren Buffett started investing at the age of 11 when he bought six shares of Cities Service preferred stock with his savings. Buffett was born in Omaha, Nebraska, the second of three children and the only son of Leila and Congressman Howard Buffett.
Young Buffett was interested in business and investing at a young age and was inspired by the book One Thousand Ways to Make $1000 that he borrowed from the public library when he was seven. Buffett made money by selling chewing gum, Coca-Cola, weekly magazines, and delivering newspapers while still in high school.
Buffett’s interest in the stock market and investing dates back to his schoolboy days. His father took him to visit the New York Stock Exchange when he was just 10 years old. Buffett bought three shares of Cities Service Preferred for himself and three for his sister Doris when he was 11. By the time he finished college, Buffett had amassed $9,800.
After being rejected by Harvard Business School, Buffett enrolled at Columbia Business School upon learning that Benjamin Graham, a well-known investor, taught there. He earned a Master of Science in Economics from Columbia in 1951. After graduating, Buffett attended the New York Institute of Finance.
Buffett worked from 1951 to 1954 at Buffett-Falk & Co. as an investment salesman; from 1954 to 1956 at Graham-Newman Corp. as a securities analyst; from 1956 to 1969 at Buffett Partnership, Ltd. as a general partner; and from 1970 as chairman and CEO of Berkshire Hathaway Inc.
In 1952, Buffett married Susan Thompson at Dundee Presbyterian Church. The next year, he accepted a job at Benjamin Graham’s partnership. Graham profoundly influenced Buffett, who described him as “the second most important man in my life after my father.” Graham taught Buffett the concept of “value investing”, which involves finding undervalued companies and holding onto them for the long term.
In 1956, Buffett established his own firm, Buffett Partnership, Ltd., with seven limited partners, including his sister Doris. By 1962, the partnership’s net worth had reached $7.2 million. In 1969, Buffett dissolved the partnership and gained control of Berkshire Hathaway, a textile business. Under his guidance, Berkshire Hathaway evolved into a conglomerate.
Buffett is known for his wit, wisdom, folksy charm, and philanthropic efforts. His investment prowess and philanthropic efforts have made him a revered figure, sought after by many for his insights and wisdom.
How Warren Buffett invests
Having grown his initial $9,800 investment into an asset base worth $114 billion over seven decades, Warren Buffett has caused a stir—questions about how he invests constantly spring up.
Some say his investment philosophy is heavily influenced by his mentor Benjamin Graham who wrote extensively about value investing. Others say he got his investment strategies from his father, Howard Buffett.
But how did Buffett grow his net worth in such a short time? Let’s dive into the American mogul’s investment portfolio and discover how he grew his $114 billion net worth through stocks, real estate, and startups.
Stocks – Berkshire Hathaway and more
Warren Buffett, one of the world’s most successful investors and the CEO of Berkshire Hathaway, has built his reputation on his investing strategy of buying strong businesses with long-term potential and holding them for the long term. Despite his adherence to a proven investing formula, he remains active in buying and selling stocks through his investment firm.
Berkshire Hathaway is a massive holding company based in Omaha, Nebraska. Founded in the 1800s as a textile milling company, it has since evolved into a conglomerate of diverse businesses operating in various industries. The company remains under the leadership of legendary investor Warren Buffett, who has been at the helm since the mid-1960s.
Under Buffett’s leadership, Berkshire Hathaway has grown to become one of the largest companies in the world, with a market capitalization that ranks it among the top tier of companies globally. Despite its size, the company is known for its decentralized structure, with individual businesses operating largely autonomously under the Berkshire Hathaway umbrella.
Among the notable businesses owned by Berkshire Hathaway are GEICO, a major insurance provider, and Fruit of the Loom, a leading manufacturer of clothing and textiles.
In the final quarter of 2022, Buffett “bought the dip” by purchasing additional Apple shares. Apple is the largest holding in Berkshire’s portfolio by market value and the second-largest by number of shares.
In addition to Apple, Berkshire Hathaway added to positions in Louisiana Pacific and Paramount Global. At the same time, Berkshire Hathaway reduced its stake in Taiwan Semiconductor and sold several bank stocks.
Warren Buffett’s top ten stocks by number of shares at the end of 2022 include Bank of America, Apple, Coca-Cola, Kraft Heinz, Occidental Petroleum, Chevron, American Express, Nu Holdings, HP, and Paramount Global.
In the first quarter of 2023, the S&P 500 gained 7%, a promising sign as it historically predicts a full-year gain of 23.1%. Following the last interest-rate-hike cycle, the S&P 500 has averaged a 12% gain.
Real estate
Real estate has been a key component of Warren Buffett’s overall investment strategy. In the early 1990s, he began buying shares of real-estate companies and has since amassed a significant portfolio in the industry.
As of 2018, Forbes estimated his real-estate portfolio to be worth $12.7 billion, thanks to Berkshire Hathaway HomeServices, which provides home valuations and other market data.
While Buffett has a reputation for being a value investor who looks for long-term growth and stability, he also understands the unique challenges of the real-estate industry.
One of his most famous real-estate investments was purchasing a beach house in Laguna Beach, California, in 1971 for $150,000. Today, the property is valued at around $11 million.
Worldwide urbanization has led to a global real-estate boom, reaching a massive $7 trillion in 2022. The sector is forecast to grow to $8 trillion from 2023 through 2028.
Startups
Warren Buffett has recently turned his attention to financial-technology startups, particularly those focused on emerging markets. One such startup is Nubank. In a recent funding round, Nubank secured $750 million, with Berkshire Hathaway investing $500 million.
This investment placed Nubank’s valuation at $30 billion. Buffett’s Berkshire Hathaway has also invested in StoneCo and the parent company of India’s Paytm.
Early-stage venture performance in 2022 slowed. Although valuations point to a more buyer-friendly market in 2023, early-stage ventures have an uncertain outlook.
Cars
Warren Buffett prefers practical vehicles. His collection includes a 2014 Cadillac XTS, a 2006 Cadillac DTS, and a 2001 Lincoln Town Car.
Buffett invests in the automobile industry through Berkshire Hathaway’s 53 million-share stake in General Motors and a stake in Chinese EV manufacturer BYD.
The automotive industry anticipates a rebound in 2023, with an expected 5.1% global vehicle-sales growth.
Planes and aviation
Buffett bought his first private jet in 1986 and later bought NetJets, giving him ownership of the world’s largest private-jet fleet.
The aviation industry is recovering, with projected worldwide passenger numbers expected to reach four billion in 2023.
Gold and silver
Buffett has never been a fan of gold but once invested nearly $1 billion into silver due to its industrial uses. Berkshire Hathaway briefly invested in Barrick Gold in 2020, exiting after two quarters.
Warren Buffett investing quotes
1. Protect your margins
2. You get what you pay for
3. Make rational decisions
