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Key Points:
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Estimates of Warren Buffet’s net worth land around $127 billion in 2024.
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Berkshire Hathaway accounts for a large percentage of his net worth.
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Buffet still lives in the same home in Omaha he purchased for $31,500 in 1958.
Warren Buffet, also known as the Oracle of Omaha, is one of the most successful investors in history. The billionaire has become one of the top ten richest people in the entire world. As of writing, Buffet is the 6th richest person in the world.
We will explore how he built this top-ten net worth.
Warren Buffet Net Worth
As of writing in January 2024, Warren Buffett has an estimated net worth of $127 billion. The 93-year-old has been a billionaire since 1985. But he still lives in the five-bedroom home he purchased back in 1958.
How He Built This Empire
Warren Buffett has been a billionaire for decades. Below is a look at how he climbed his way to the top.
- Value investing: Warren Buffett has largely built his net worth through value investing, which involves buying underpriced companies with solid prospects and holding them for the long term.
- Berkshire Hathaway: It’s impossible to talk about Buffett without mentioning the dying textile mile he bought with Charlie Munger. As the textile business grew and produced cash flow, Buffett invested those funds into other businesses. He is still the CEO of this company.
- Frugality: Buffet is notoriously frugal. He still lives in the same five-bedroom house he bought back in the 1950s. He also drove a 2001 Lincoln Town Car for around a decade.
How He’s Growing the Funds
Buffet has been a part of the exclusive triple comma club for decades. That hasn’t stopped him from continuing to grow his fortune. Below is a look at how he keeps the funds growing.
- Value investing: Buffett hasn’t given up on value investing, which has worked out so well for him. Instead of letting his fortune sit in cash, he is keeping it mostly invested in Berkshire Hathaway. In 2023, he earned an estimated $13.6 billion from his holdings in the company.
- Modest lifestyle: For a billionaire, Buffett maintains a modest lifestyle. The limited spending allows his net worth to continue growing.
It’s worth noting that Buffett has committed to giving away a large portion of his fortune to charity. In fact, he has committed to giving away 99% of his fortune during his lifetime or at his death. So far, he has donated around $55 billion.
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Warren Buffet’s Advice on How to Get Rich
If you want to build a big net worth, advice from a billionaire could help. Below is a look at some of the advice that Buffett has provided over the years.
- Start saving early: The sooner you can start saving, the sooner you can start building wealth. Compounding offers an opportunity to earn returns on your investment’s earnings, which can fast-track your path to wealth. Consider stashing your savings in a high-yield savings account.
- Invest selectively: Buffett is a proponent of value investing. This strategy involves seeking out an undervalued asset and buying it for its long-term potential.
- Avoid debt: Debt can weigh you down. He advises against taking on too much debt.
- Take the opportunities that come: Buffett has said, “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.”
- Stay frugal: The billionaire avoids careless spending, saying, “If you buy things you don’t need, you will soon sell things you need.”
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The Bottom Line
Warren Buffett has had decades to grow his fortune. While not everyone will become a billionaire, the strategies he shares can help almost anyone build wealth.
For example, opening a high-yield savings account and living below your means can help you build a wealthy nest egg. When an opportunity to invest comes along, you can be ready to put out your own bucket and supercharge your net worth strategy.
Another point that stands out is that Buffett has lived in the same home for over 50 years. If you are ready to put down roots in a house that suits your needs and your financial goals, consider shopping around for a mortgage.
Ultimately, building wealth successfully involves many moving pieces. But if you are up for the challenge, then don’t wait to get started!
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Sarah Sharkey is a personal finance writer with a Master's in Management from the Hough School of Business at the University of Florida. She enjoys helping people make better financial decisions and has written for numerous personal finance publications, including Money Under 30, Business Insider, and The College Investor. Sarah enjoys traveling, hiking, and reading when she is not writing.
