In 1958, Warren Buffett bought this house in Omaha for $32k which he still owns (it’s now worth $650k).
If he instead slept on Charlie Munger’s couch and invested those funds into Berkshire Hathaway, it would be worth $1.2B.
Lesson: Don’t buy real estate.
If he instead slept on Charlie Munger’s couch and invested those funds into Berkshire Hathaway, it would be worth $1.2B.
Lesson: Don’t buy real estate.
One caveat: Buffett didn’t fully takeover Berkshire Hathaway until 1965.
Anyways, here’s the most absolute dollars Buffett’s ever made on an investment: trungphan.substack.com
Anyways, here’s the most absolute dollars Buffett’s ever made on an investment: trungphan.substack.com
Rough math: I took the cumulative return for Berkshire from the annual letter (up to end 2021) and multiplied it by $32k. Think it’s in the ballpark or $1.2B, though. berkshirehathaway.com
Per @DividendGrowth, the same investment made in 1958 would actually be $7B (the absolute gain from annual letter wasn’t correct multiplying factor).
Here’s full proper math from @DividendGrowth. Same $32k into the S&P 500 would have hit ~$18m.
🔗 dividendgrowthinvestor.com
🔗 dividendgrowthinvestor.com
Great line about Buffett from Morgan Housel’s The Psychology of Money: “His skill is investing, but his secret is time.”
🔗 amazon.ca
🔗 amazon.ca
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