Warren Buffett Has $163 Billion—and Still Lives in a $31,500 House

By Grace Kim

Fortune reports that Warren Buffett’s $163 billion fortune comes with a five-bedroom, 2.5-bathroom Omaha house he bought for $31,500 in 1958. Berkshire Hathaway’s former CEO, 96, remains the world’s 10th-richest person, according to Bloomberg’s billionaire profile cited by Fortune.

Buffett has added billions to his name over a seven-decade career, yet he kept the habits of a much more modest household, Fortune reports. His long-running preferences include McDonald’s meals, an old car, coupon clipping and the same Nebraska home instead of mansions and luxury vehicles.

What does Buffett think wealth can do?

In his final Berkshire Hathaway shareholder letter last November, Buffett rejected wealth, publicity and political power as measures of greatness. “Greatness does not come about through accumulating great amounts of money, great amounts of publicity or great power in government,” he wrote.

He also tied greatness to how one person treats another. “When you help someone in any of thousands of ways, you help the world,” Buffett continued.

He added: “Kindness is costless but also priceless. Whether you are religious or not, it’s hard to beat The Golden Rule as a guide to behavior…Keep in mind that the cleaning lady is as much a human being as the Chairman.”

Fortune says Buffett applies that rule regardless of rank, from junior-level workers and founders of unicorn companies to the world’s most powerful business leaders. In his meetings with prominent executives, he has resisted spending on fancy meals merely to make an impression.

Takeaway: His measure of success starts with respect for other people, not the size of the balance sheet.

How does Buffett spend at McDonald’s?

At McDonald’s, Buffett typically orders two sausage patties, an egg and cheese, or a bacon egg and cheese, according to Fortune. Each option costs less than $4. He took Bill Gates there for lunch years ago instead of choosing a fancy restaurant.

During one visit to a McDonald’s in Hong Kong, Buffett offered to foot the small bill and pulled coupons from his pocket. Gates later recalled laughing at the scene: the billionaire investor searching for discounts on a McDonald’s meal.

The episode matched the pattern Fortune describes: Buffett treated the lunch as an opportunity to save rather than a venue for display. His choice also showed that he did not believe business rank required a dinner with a luxury price tag.

Takeaway: At McDonald’s, a sub-$4 order remains his benchmark for a business meal.

Why does he keep the same house and car?

Buffett bought the five-bedroom, 2.5-bathroom Omaha home in 1958 for $31,500, Fortune reported. The property would be worth around $1.4 million today, but he still lives there.

He said he “wouldn’t trade it for anything.” Buffett tied his affection for the property to the memories of raising his three children there, rather than to its market value.

His restraint extends to cars. Buffett has avoided Lamborghini and Aston Martin, according to Fortune. He once drove a 20-year-old car because he felt it was safer than a speedier luxury alternative. At one point, his license plate read “THRIFTY.”

Takeaway: His home and car remain tied to family, safety and habit, not status.

Does more spending make him happier?

At a Berkshire Hathaway shareholders meeting in 2014, Buffett said: “I do not think that standard of living equates with cost of living beyond a certain point.”

He continued: “My life would not be happier…it’d be worse if I had six or eight houses or a whole bunch of different things I could have. It just doesn’t correlate.”

His comments make the direction of his spending clear. Extra houses, faster cars and other status purchases would not add happiness, in his view. Buffett treats the point where spending stops improving his life as a limit, even with a fortune measured in billions.

Takeaway: For Buffett, spending beyond a certain point does not improve his life.

After a seven-decade career built around accumulation, Buffett’s final letter leaves a simpler measure: usefulness and kindness matter more than a bigger balance sheet.