Warren Buffett just announced he's donating $3.6 billion in Berkshire Hathaway shares to 5 foundations. Here's how the notoriously frugal billionaire spends his $87.3 billion fortune

Warren Buffett has an estimated net worth of $87.3 billion.
But you wouldn’t know the investor is America’s third-richest man by his frugal lifestyle.
Buffett lives modestly and is one of the world’s most generous philanthropists, opting to give away most of his billions to charity.
On July 1, Buffett announced that he would donate $3.6 billion in Berkshire Hathaway shares to five different foundations.
Visit Business Insider’s homepage for more stories.

Still living in the house he bought in the 1950s and driving an equally modest car, Berkshire Hathaway chairman Warren Buffett prefers to keep and grow his money rather than take it out of the bank. Not one for lavish purchases, he spends relatively little of his billions – except when it comes to philanthropy.

Buffett announced July 1 that he will donate $3.6 billion in Berkshire Hathaway shares to five groups including the Bill & Melinda Gates Foundation. Buffett is regarded as one of the most generous philanthropists in the world, having donated more than $46 billion since 2000.

Now 88, the Oracle of Omaha’s estimated net worth stands at $87.3 billion according to the Bloomberg Billionaires Index – but you wouldn’t know it from Buffett’s frugal ways.

However he uses his money, not much is spent on himself. See how Buffett spends – or doesn’t spend – his billions.

Warren Buffett has a net worth of $87.3 billion, making him the world's fourth-richest person.

Foto: sourceSteve Pope/Getty Images

Source: Forbes

The CEO of Berkshire Hathaway began building his wealth by investing in the stock market at age 11.

Foto: sourcePaul Morigi/Getty Images

Source: Forbes

As a teenager, he was raking in about $175 a month by delivering "The Washington Post" — more than his teachers (and most adults).

Foto: sourceBill Pugliano/Getty

Warren Buffett has a net worth of $87.3 billion, making him the world's fourth-richest person.

The CEO of Berkshire Hathaway began building his wealth by investing in the stock market at age 11.

As a teenager, he was raking in about $175 a month by delivering "The Washington Post" — more than his teachers (and most adults).

He had amassed the equivalent of $53,000 by the time he was just 16.

But 99% of his wealth was earned after his 50th birthday.

He reportedly earns a salary of $100,000 at Berkshire Hathaway.

And in 2013, Buffett made on average $37 million per day — more than what Jennifer Lawrence made the entire year.

His wealth is greater than the GDP of Uruguay.

But you wouldn't know Buffett is a billionaire by the way he spends his money.

He previously told CNBC and Yahoo Finance's "Off the Cuff" that he's "never had any great desire to have multiple houses and all kinds of things and multiple cars."

Buffett lives in a modest home in Omaha, Nebraska, which he bought for $31,500 in 1958. Adjusted for inflation, it's about $276,700 in today's dollars.

As of 2017, it was worth an estimated $652,619, what he calls the "third-best investment he's ever made."

The home spans 6,570 square feet. It has five bedrooms and two-and-a-half bathrooms.

It's also guarded by fences and security cameras.

In 1971, Buffett purchased a vacation home in Laguna Beach, California, for $150,000.

Part of a gated community called Emerald Bay, it's walking distance from the beach.

According to the listing, the home comes with a $9,264 annual association fee, which grants him access to nearby amenities like a pool and spa, picnic area, playground, and tennis court.

It has 3,500 square feet of living space and six bedrooms. Buffett has renovated it since his initial purchase.

Each bedroom has its own en-suite bathroom.

It's secluded and has plenty of wide-open windows for views of the sea.

It's also secluded and simply decorated, mirroring Buffett's simple spending habits.

He put it on the market for $11 million in early 2017, but cut it down to $3 million later that year.

After nearly two years on the market, it finally sold in October 2018 for $7.5 million.

Buffett also has a modest set of wheels. He previously drove a 2006 Cadillac DTS.

In 2014, he replaced it with a Cadillac XTS, which has an original starting price of $44,600.

He also buys beat-up cars — like hail-damaged cars — at reduced prices and is reluctant to replace them, daughter Susie Buffett said in a BBC documentary.

"The truth is, I only drive about 3,500 miles a year so I will buy a new car very infrequently," Buffett once told Forbes.

He once auctioned his car for $73,200.

His Lincoln Town Car once had a license plate that read "THRIFTY."

Buffett doesn't spend much on technology, at least when it comes to his mobile phone. He still uses a flip phone instead of a smartphone.

Buffett isn't a fan of high-end designer suits. He only wears suits — of which he owns about 20 — made in China by designer Madame Li.

Buffett tops off his style with an $18 hair cut.

Buffett eats the same thing every morning for breakfast — McDonald's. He spends no more than $3.17 on his order.

He also likes to treat his buddy Bill Gates to lunch at McDonald's — which he's paid for with coupons in the past.

Buffett is also a thoughtful friend without spending a lot of money. He picks Gates up at the airport, calls him, and sends him news clippings via snail mail.

Buffett also dines at the modest Gorat's steakhouse, his favorite. The menu ranges from $3 to $41.

Buffett is also a fan of Coca Cola; he has said he typically drinks five Cokes a day — so you can imagine he spends more on the beverage than the average person.

Compared to other CEOs, Buffett doesn't spend a whole lot on his hobbies. He plays bridge for about 12 hours a week.

Buffett also likes to hit the green for some golf — but he doesn't spend his money on fancy golf clubs.

"I'm a member of every golf club that I want to be a member of […] I'd rather play golf here with people I like than at the fanciest golf course in the world," he once said in a Q&A.

He also puts a lot of money toward books. He's said he has a "disgusting pile" of books by his chair, and he spends 80% of his day reading.

Buffett also loves to play the ukulele. Girls Inc of Omaha once hosted a ukulele concert as a benefit for Buffett, in which they earned $344.23 in donations.

He took the money and purchased 17 Hilo ukuleles for the group — but not without demanding a discount because he was buying in bulk.

He's even frugal when it comes to his kids — he fashioned a dresser drawer into a bassinet for his firstborn, Susie.

For his second born, Howard G. Buffett, he borrowed a crib.

Buffett once spent $100 to take a Dale Carnegie course on public speaking. It helped him propose to his wife, he said.

The one thing Buffett has splurged on is a private jet. He told CNBC, it's "the only thing that I do that costs a lot of money."

But that wouldn't be possible without his wise investing strategies. While 99% of Buffett's net worth is tied to Berkshire Hathaway, he invests the other 1%.

He purchased shares in Wells Fargo "a long, long time ago," but it's unclear what his stake in the company is.

He also purchased two million shares — an 8% stake — in Seritage Growth Properties for a total estimated cost of $73 million.

He also owns an undisclosed amount of JPMorgan stock. He's said to be a fan of the bank's CEO, Jamie Dimon.

But not all his investments have been wise — back in 1951, he bought a Sinclair gas station with a friend. The Texaco station across the street was more popular, and he lost $2,000 out of his $9,600 savings.

Buffett spends most of his billions on philanthropy; he's considered one of the most generous philanthropists in the world, having donated more than $46 billion to causes since 2000.

He teamed up with Bill and Melinda Gates in 2010 to form The Giving Pledge, an initiative that asks the world's wealthiest people to dedicate the majority of their wealth to philanthropy.

In 2016, he donated $2.9 billion to various charities, including The Bill and Melinda Gates Foundation and the Susan Thompson Buffett Foundation, in honor of his late wife.

Buffett, through the Susan Thompson Buffett Foundation, has donated tens of millions to the Planned Parenthood Federation of America and the National Abortion Federation.

He donated even more to the Bill and Melinda Gates Foundation in 2018 — around $2.6 billion worth of Berkshire Hathaway stock.

That same week, he donated about $800 million in Berkshire Hathaway stocks to the Susan Thompson Buffett Foundation, Sherwood Foundation, Howard G. Buffett Foundation, and NoVo Foundation.

Buffett donated another $3.6 billion in Berkshire Hathaway shares to those organizations in June 2019.

Buffett only plans to leave his kids $2 billion each; the rest of his fortune will be donated to philanthropic causes. He once said he wants to leave his children "enough money so that they would feel they could do anything, but not so much that they could do nothing."

There is one thing money does buy for Buffett personally, he said in a CNBC interview: Freedom.

"My life couldn't be happier" he once said. "In fact, it'd be worse if I had six or eight houses. So, I have everything I need to have, and I don't need any more because it doesn't make a difference after a point.”

BEKIJK OOK: Zo wordt het zeldzaamste zeewier geoogst

Meer levensgeluk in je carrière? Het Japanse model ‘Ikigai’ vertelt wel pad het beste bij jou past

Zorg dat je deze vier essentiële zaken op orde hebt als je begint met online verkopen

Vijf cruciale bedrijfsvragen die je niet kunt stellen aan openbare AI - en wel aan embedded AI

Jorik Schröder van Experiencegift: ‘Direct live gaan in 20 landen zien anderen misschien als een gewaagde keuze, ik niet’

Succesvol beleggen in 2025? Deze Beleggerstrainer geeft praktische tips voor het opbouwen van je portefeuille

Het monitoren van je cashflow is cruciaal voor je financiële fitheid – zegt deze CFO