Billionaire investor Warren Buffett, known for his frugal lifestyle, initially gifted thousands of dollars in cash to his family members. However, after seeing their tendency to quickly spend these gifts, he changed his approach. Luck Informed.
“We’ll spend it as soon as we get home, wow!” The billionaire’s former daughter-in-law, Mary Buffett, who was married to his son Peter in 1980, told idea advisor,
Instead of cash, Buffett began gifting his family members shares in companies in which he had recently invested, including Coca-Cola.
“Then, one Christmas he had an envelope with a letter in it. Instead of cash, he gave us $10,000 worth of shares in a company he had recently purchased on behalf of Coca-Cola,” she said.
This strategy not only provided a more valuable gift in the long run but also served as an invaluable lesson in investing and wealth building.
His former daughter-in-law described how he initially intended to sell the gifted shares, but ultimately kept them and saw their significant growth.
“I thought: ‘Okay, (the stock) is worth more than $10,000.’ So I kept it and it grew.”
This experience instilled in him a long-term investment perspective, which influenced his financial strategies.
Warren Buffett’s commitment to prioritizing long-term investing over short-term gratification reflects his philosophy of building wealth through patience and discipline.
At age 94, Buffett is known for his pledge to donate 99% of his wealth to charity and not to leave the bulk of his fortune to his children, saying he “never wished to create a dynasty.” Buffett, known as the “Oracle of Omaha,” reiterated this stance last month when appointing three independent trustees to oversee his philanthropy after his three children step down, CNBC reported.
In a letter, Buffett explained his decision, writing: “I have never wished to create a dynasty or pursue any plans that extend beyond children. I know these three very well and have full confidence in them.” Future generations are another matter. Who can predict the preferences, intelligence and allegiances of successive generations in dealing with the distribution of extraordinary wealth?”
Buffett, whose children are now 71, 69 and 66, has acknowledged the possibility that it may take longer for his wealth to be distributed than for his children. In addition to naming the trustees, he also donated $1.1 billion in Berkshire Hathaway stock to his family’s four charities.
