Most people assume a billionaire’s life is wall-to-wall luxury, private jets, and rare wines. But one of the world’s wealthiest men, Warren Buffett, built his fortune on a set of habits that look surprisingly ordinary: reading, frugality, and an almost stubborn refusal to sell – turning value investing into a $120 billion empire.
Net Worth: $120 billion (2025) · Age: 94 · Company: Berkshire Hathaway · Known For: Value Investing · Hometown: Omaha, Nebraska · Education: University of Nebraska, Columbia Business School
Quick snapshot
- Net worth of $120 billion as of 2025 (Associated Press)
- Owns about 400 million shares of Coca-Cola (9.2% of company) (Livemint)
- Reading habit: 5+ hours daily dedicated to reading and thinking (CEO Today Magazine)
- Frugal lifestyle: eats McDonald’s breakfast daily (Nasdaq)
- Exact reason for Susan Buffett leaving in 1977 — no single confirmed explanation
- Future succession plan for Berkshire Hathaway after Buffett
- His political affiliation — Buffett has donated to both parties
- Exact percentage of daily reading time — varies by source
- 1930 — Born in Omaha, Nebraska
- 1956 — Founded Buffett Partnership Ltd.
- 1965 — Took control of Berkshire Hathaway
- 1988 — Began investing in Coca-Cola
- 2024 — Net worth exceeds $100 billion
- Succession at Berkshire Hathaway — Greg Abel is expected to take over
- Ongoing debate: value investing vs. high-growth tech investing
- Buffett’s philanthropy via the Giving Pledge continues distributing wealth
| Attribute | Value |
|---|---|
| Full Name | Warren Edward Buffett |
| Born | August 30, 1930 |
| Net Worth (2025) | $120 billion |
| Company | Berkshire Hathaway |
| Known For | Value investing, philanthropy |
| Spouse | Astrid Menks (married 2006), previously Susan Buffett |
| Education | University of Nebraska, Columbia Business School |
How Did Warren Buffett Get Rich?
Buffett built his fortune through disciplined value investing, a habit he started at age 11.
Early investments and partnerships
- Buffett bought his first stock at age 11 in 1942 — six shares of Cities Service Preferred for himself and three for his sister (Livemint)
- In 1956, he launched Buffett Partnership Ltd. with $100,100 from seven family members and friends
- By 1962, the partnership had grown to over $7 million in assets
His early portfolio was built on the principle of buying companies below their intrinsic value — a lesson he learned from Benjamin Graham at Columbia Business School. The partnerships gave him the capital base to eventually take control of a struggling textile manufacturer: Berkshire Hathaway.
Acquisition of Berkshire Hathaway
- Took control of Berkshire Hathaway in 1965 at age 34
- Initially a textile mill, Buffett transformed it into a holding company for acquisitions
- Berkshire’s stock price has grown from about $18 per share in 1965 to over $600,000 per share today
Buffett’s strategy was simple but brutal: buy solid businesses with durable competitive advantages (“moats”), install trustworthy management, and hold forever. Livemint reports that Buffett’s annual letters repeatedly emphasize long-term ownership of quality businesses over short-term trading.
Key investment principles
- “Price is what you pay. Value is what you get.” (Livemint)
- Wide diversification is only necessary when investors don’t understand what they’re doing
- Risk comes from not knowing what you are doing
- Buy a wonderful company at a fair price rather than a fair company at a wonderful price
Buffett’s buy-and-hold strategy has outperformed nearly every active fund manager over 60 years — but it requires patience most investors lack. The average mutual fund holding period is under one year. Buffett holds for decades.
Who Is Richer, Elon Musk or Warren Buffett?
Comparing net worths reveals different risk profiles.
Current net worth comparison
Several comparisons, one clear picture: Elon Musk’s net worth is higher than Buffett’s as of 2025. While Buffett sits at roughly $120 billion, Musk’s wealth fluctuates around $200-250 billion depending on Tesla’s stock price and SpaceX’s valuation (Associated Press).
Sources of wealth: Musk vs. Buffett
The table below contrasts their wealth sources and investment styles.
| Dimension | Warren Buffett | Elon Musk |
|---|---|---|
| Primary wealth source | Berkshire Hathaway equity portfolio | Tesla stock options + SpaceX equity |
| Investment style | Value investing, long-term holding | Growth investing, founder-led execution |
| Number of companies controlled | 60+ subsidiaries under Berkshire | Tesla, SpaceX, X (Twitter), Neuralink, xAI |
| Risk approach | Conservative, prefers moats | Aggressive, bets on engineering breakthroughs |
| Personal spending | Frugal — lives in same house since 1958 | Sells homes, lives in prefab houses |
The contrast is starker than the net worth numbers suggest. Buffett’s wealth is highly diversified across industries (insurance, railroads, energy, consumer goods). Musk’s is concentrated in two high-growth tech companies. Both approaches work — but under different market conditions.
Musk wins on absolute net worth; Buffett wins on stability and predictability. For a risk-averse investor in their 60s, Buffett’s model is safer. For a younger investor with appetite for volatility, Musk’s trajectory offers higher upside.
The trade-off: Musk’s wealth could collapse if Tesla’s valuation contracts, as happened in 2022. Buffett’s wealth grows steadily — it took a lifetime, but it’s less exposed to any single company’s failure.
Does Warren Buffett Still Own Coca-Cola?
Yes, he still holds the stake he built in the late 1980s.
Buffett’s Coca-Cola investment history
Buffett began buying Coca-Cola shares in 1988. At that time, the company was trading at depressed multiples after the 1987 crash. He saw a global brand with pricing power and distribution that couldn’t be replicated. Berkshire Hathaway spent about $1.3 billion on the stake. Livemint reports that Buffett still holds that original stake — a 36-year investment that many traders would consider unthinkable.
Current stake size and value
- Berkshire owns approximately 400 million shares of Coca-Cola — about 9.2% of the company
- The stake is worth roughly $25 billion as of early 2025
- Annual dividends from Coca-Cola alone exceed $700 million
Buffett has said he will never sell his Coca-Cola shares. The investment has returned more than 20 times the original cost through dividends and price appreciation.
Other major holdings
- American Express — 22% stake
- Apple — 5.9% stake (though Buffett has trimmed in 2024-2025)
- Bank of America — 13% stake
- Geico — wholly owned subsidiary
- BNSF Railway — wholly owned subsidiary
In 2024, Buffett began reducing Berkshire’s Apple position — a rare move that signals he may see the broader market as overvalued. For investors who track Buffett’s moves, portfolio trimming is the strongest signal of caution.
The pattern: Buffett doesn’t trade stocks. He owns businesses. Coca-Cola isn’t a “bet” for him — it’s a piece of a global distribution system that generates cash every single day. The dividends alone justify the hold.
What Is Buffett’s 5 Hour Rule?
Buffett’s famous reading habit is more than a curiosity — it’s a competitive advantage.
Origin of the rule
The “5 hour rule” isn’t something Buffett invented — it’s what journalists noticed when studying his schedule. Buffett reportedly spends roughly 80% of his day reading and thinking — that’s about five hours per day dedicated to research, financial statements, books, and newspapers (CEO Today Magazine).
How Buffett spends his time
- Mornings: coffee, Coca-Cola, and reading business newspapers
- Midday: minimal meetings — he keeps his calendar empty by design
- Afternoons: reviewing annual reports, SEC filings, and investment memos
- Evenings: reading books for about 30 minutes before bed
Buffett’s own words, reported by Associated Press, reinforce this: “Read 500 pages every day. That’s how knowledge works. It builds up, like compound interest.” He applies the same principle to knowledge that he does to money: slow, steady accumulation over decades.
Application to other successful people
The same pattern shows up in biographies of Bill Gates, Charlie Munger, and Elon Musk. Gates reads 50+ books per year. Munger read himself to sleep with biographies. The difference is that most executives fill their days with meetings — Buffett makes reading the main event.
For professionals making under $200,000 per year, the 5-hour rule is arguably more actionable than any stock tip. You don’t need a billion-dollar portfolio to copy Buffett’s learning habit. You just need five hours a week — and a willingness to say no to meetings.
The catch: most people don’t do it because reading doesn’t feel productive. Checking emails, answering calls, and attending meetings produce immediate feedback. Reading produces compound interest — and compound interest is invisible in the short term.
Why Did Warren Buffett’s Wife Leave?
Buffett’s personal life reflects the same long-term approach but with different outcomes.
Background of marriage to Susan Buffett
Warren Buffett married Susan Thompson in 1952. They had three children together: Susie, Howard, and Peter. Susan was a driving force behind many of his early decisions, including his move to Omaha and his focus on investing. By most accounts, they had a warm partnership for the first 25 years.
Reason for separation
In 1977, Susan Buffett moved to San Francisco to pursue a singing career. The separation was not a divorce — they remained legally married and stayed close until her death in 2004 from stroke. Livemint notes that the exact reason for Susan leaving remains unclear — no single explanation has been confirmed. Some biographers suggest she wanted independence; others point to Buffett’s obsessive focus on work.
What is documented: Susan introduced Warren to Astrid Menks in the late 1970s. Astrid moved in with Warren in 1978 and they married in 2006, two years after Susan’s death. Buffett has described both women as central to his life.
Current relationship status
Buffett married Astrid Menks in 2006 at age 76. The marriage was small and private. Astrid has maintained a low profile compared to Susan. Buffett’s charitable commitments — the Giving Pledge, his eventual donation of 99% of his wealth — were strongly influenced by Susan’s values and vision.
The same man who holds stocks forever couldn’t hold a conventional marriage. Buffett’s long-term discipline in markets didn’t translate to his personal life. For investors studying Buffett, it’s a reminder: discipline in one domain doesn’t guarantee it everywhere.
Timeline
- 1930 — Born in Omaha, Nebraska
- 1942 — Bought first stock at age 11
- 1956 — Founded Buffett Partnership Ltd.
- 1965 — Took control of Berkshire Hathaway
- 1977 — Susan Buffett moves to San Francisco
- 1988 — Began investing in Coca-Cola
- 2006 — Married Astrid Menks
- 2024 — Net worth exceeds $100 billion
“Price is what you pay. Value is what you get.”
— Warren Buffett, Livemint
“Read 500 pages every day. That’s how knowledge works. It builds up, like compound interest.”
— Warren Buffett, Associated Press
“Honesty is a very expensive gift, don’t expect it from cheap people.”
— Warren Buffett
What this adds up to: For the average retail investor trying to navigate 2025’s volatile markets, the choice is clear: adopt Buffett’s habit of reading and thinking, or keep reacting to every price swing. One path builds wealth over decades. The other pays brokerage fees. Buffett already made his choice 80 years ago. You get to make yours today.
youtube.com, economictimes.indiatimes.com, finance.yahoo.com, app.routines.club, youtube.com, youtube.com, reclaim.cdh.ucla.edu, apnews.com
Frequently asked questions
How much Coca-Cola does Warren Buffett own?
Berkshire Hathaway owns approximately 400 million shares of Coca-Cola, representing about 9.2% of the company. The stake is worth roughly $25 billion as of 2025.
Which billionaire eats McDonald’s every day?
Warren Buffett eats McDonald’s for breakfast every morning. He has famously said he orders either $2.61, $2.95, or $3.17 worth of breakfast based on market conditions that day.
What is Warren Buffett’s education?
Buffett earned a Bachelor of Science in Business Administration from the University of Nebraska in 1950, then a Master of Economics from Columbia Business School in 1951, where he studied under Benjamin Graham.
What books did Warren Buffett write?
Buffett has not written a full-length book himself. However, his annual letters to Berkshire Hathaway shareholders are widely collected and published as The Essays of Warren Buffett, compiled by Lawrence Cunningham.
What is Warren Buffett’s net worth?
Warren Buffett’s net worth is approximately $120 billion as of 2025, making him one of the ten richest people in the world.
How old is Warren Buffett?
Warren Buffett was born on August 30, 1930. He is 94 years old as of 2025.
What companies does Warren Buffett own?
Berkshire Hathaway wholly owns Geico, BNSF Railway, Duracell, Dairy Queen, and See’s Candies, and holds major stakes in Apple, Coca-Cola, American Express, and Bank of America.
What is Warren Buffett’s investment philosophy?
Buffett follows value investing: buying wonderful companies at fair prices, holding them for the long term, and focusing on businesses with durable competitive advantages (“moats”) and strong management.
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Jonathan MacDonald is Editor-in-Chief at Civic Maple, overseeing editorial standards, publication decisions and corrections.