Warren Buffett has built his $150 billion fortune on frugality and disciplined investing.
The “Oracle of Omaha” still lives in the Omaha home he bought in 1958 for $31,500, according to Investopedia, drives modest cars and famously eats McDonald’s for breakfast spending no more than $3.17, according to CNBC. But even the world’s most famous penny-pincher has a few areas where he’ll open his wallet wide. Below are four of Buffett’s biggest splurges.
Also here are top money mistakes Buffett has warned about.
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Buying a Private Jet Called ‘the Indefensible’
Buffett’s most famous splurge came in 1986 when he bought his first private jet for $850,000, according to Sentinel Aviation. The purchase was so out of character that he nicknamed the plane “The Indefensible.”
“For years, I argued passionately against corporate jets,” Buffett said in a 1992 shareholder letter.
But Buffett quickly discovered the value of private air travel. Just three years later, he upgraded to a different used aircraft for $6.7 million in 1989, according to Business Insider. He even renamed the plane “The Indispensable” after realizing how much time it saved him.
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Acquiring NetJets for $725M
Buffett’s love affair with private aviation didn’t stop there. In 1998, he bought the entire fractional jet ownership company NetJets for $725 million in cash and stock, according to Insurance NewsNet.
The investment initially looked like a mistake, losing $711 million in its first 11 years. But the company eventually turned around and today NetJets operates more than 750 aircraft as the world’s largest private jet operator.
Charitable Giving: $62B and Counting
Buffett’s biggest splurge isn’t for himself. He’s given away $62 billion to charities and has pledged to donate 99% of his wealth before or after he dies, according to GOBankingRates.
In 2010, Buffett joined Bill and Melinda Gates to create The Giving Pledge, which now has signatures from more than 200 wealthy individuals committed to giving away the majority of their fortunes.
Investing in Personal Development
While Buffett won’t splurge on luxury cars or opulent mansions, he consistently spends money on books, education and personal growth. He’s famous for reading for hours each day.
“Invest in as much of yourself as you can,” Buffett said, as quoted by the Gentleman’s Journal.
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This article originally appeared on GOBankingRates.com: 4 of Warren Buffett’s Biggest Splurges
