I’ve started to read “The Snowball“, which is a biography of Warren Buffett. So far, it’s a facinating book, that has changed my perspective on my “Financial Hero #2 Warren Buffett” post.
Although I’m only 1/4 of the way through the book, I wanted to mention something that I wouldn’t have guess about Warren Buffett. He was a Renter!
There was a time when Mr. Buffett was just a little rich (my my standards) and so he was a renter. When he was 26 year old (and rich by most of our standards), he said that he was retired (but really this was just the beginning). He had gathered enough money by that age that he would live off of the money he had at the time. He believed that he could live off of that money through his stock market skills (and he was right). But he didn’t stop there, no sir! He started managing trusts for people. They would invest and he would manage their money into investments.
Warren rented because he didn’t want to tie up his money in a house at that time, after all, he needed to live off of the interest on the stocks he owned. This was highly unusual at the time, especially considering that even at 26, he would have be considered rich by most standards.
So all of you Renters out there that claim your way is the best… you might be right, especially if you have investing skills like Warren did.
The catch is he didn’t rent for very long after he was 26… Eventually he bought a house (I think the one he lives in today).
So you crafty renters out there that might be investing tons of money! Hats off to you all!
-MR
Okay, now I have got to read the book. It’s on my list of things to read. So, it sounds like he maintains his 26 yr old lifestyle with the now… Isn’t into always trading up with materialistic things… Lives the simple life.
Really, filed a tax return at 13 so he could deduct his bike? LOL. Would love to see my kids doing that one!
Warren Buffett is fascinating. I love that he lives in the same house in Nebraska (I think) after all these years.
I have often wondered if we would have been better off renting vs. buying. In a down housing market, it is probably better to rent. But when house prices were skyrocketing a few years ago, it seemed better to buy. I guess you just never know!
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@Money Funk
So far it’s a facinating book! You learn some of Warren’s demons that he had to overcome to be at various time the richest person in the world!
Oh, the book starts out slow, but picks up once it jumps to his childhood. From that point on, it start to take a more chronological approach.
@Everyday Tips
I agree. In the book, at age 26, he had enough money that he believed (and was right), that he could live on the interest and earnings from his core money. So he didn’t want to sink the money in a house because then he would be short money then.
I guess in a way, he was a financially independent at age 26 if the family lived a frugal kind of lifestyle (which he was at the time) and he continued investing as well as history has proved that he was capable of.
Truly amazing feat at 26.
I really enjoyed that book, and learning so many little details that I never would have guessed about him.
@Jackie
I’m only 1/4 of the way though, but I agree it’s fascinating! It good to see that even the rich person in the world (sometimes), has to work through issues!
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Thanks for this post. I need to read the book too!
I haven’t read much about him, but it is truly amazing at how innately talented he was.
He really sets an example to everyone with his frugal habits. But he has earned what he has!
The Snowball changed my life (a little heavy, I know) and I would never dare say I am even close to as skilled as Warren, but I am still a renter and after doing the math, so far I am well ahead and happy to be still renting. A must read, no doubt.
@Jaime @ Eventual Millionaire
So far I have really enjoyed the book. It shows how Warren Buffett really is, including his weaknesses.
Like all biographies, it’s a bit dry, but very interesting.
@Dan Gazarek
Yeah, I was impressed by the fact that he was a renter for so long.