Warren Buffett: The Oracle of Omaha’s Humble Habits
When discussing wealth and frugality, it is almost impossible not to begin with Warren Buffett. The chairman and CEO of Berkshire Hathaway is consistently ranked among the wealthiest people in the world, with a fortune estimated by Forbes to be in the hundreds of billions. Yet, his lifestyle is a masterclass in modesty and a direct answer to the question of how Warren Buffett lives frugally. His choices are not a recent development or a publicity stunt; they are the bedrock of a philosophy he has maintained for decades.
Perhaps the most famous example of his frugality is his home. In 1958, Buffett purchased a five-bedroom house in Omaha, Nebraska, for $31,500. He still lives there today. In a 2010 letter to shareholders, he called it the “third best investment I ever made.” He has famously eschewed the sprawling mansions typical of his financial peers, preferring the comfort and simplicity of the home where he raised his family. This decision alone speaks volumes about his detachment from the trappings of extreme wealth.
His daily routine further cements his reputation for thrift. For years, his breakfast of choice has been a trip through a McDonald’s drive-thru, with his order depending on how the market is doing that morning. As detailed in the HBO documentary Becoming Warren Buffett, he tells his wife how much to put in his car’s center console each morning—$2.61, $2.95, or $3.17—for a corresponding breakfast item. He explained, “When I’m not feeling quite so prosperous, I might go with the $2.61, which is two sausage patties.”
Buffett’s transportation choices are similarly grounded. He is known for driving moderately priced cars and keeping them for years, a stark contrast to the luxury fleets owned by many high-net-worth individuals. He once told CNBC that he typically only drives about 3,500 miles a year, so he has no need for a new car frequently. His daughter Susie recalled in the documentary that he bought cars that had been damaged by hail at a discount to save money.
His philosophy is not about hoarding wealth for its own sake. Buffett is one of the world’s most generous philanthropists. Alongside Bill and Melinda Gates, he created The Giving Pledge in 2010, a commitment by the world’s wealthiest individuals to dedicate the majority of their wealth to charitable causes. His personal frugality allows for this large-scale generosity, demonstrating that he sees money not as a tool for personal luxury but as a resource for societal good. His lifestyle is a direct reflection of his investment strategy: find intrinsic value, avoid unnecessary expenses, and think for the long term.
