15 Facts You Didn’t Know About Warren Buffett

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We may not have the same investment/trading style (he’s laugh at my strategy outlined in these free video lessons), but I have the utmost respect for billionaire Warren Buffett for creating and refining the world’s most successful investment strategy.

He got fined for his penny stock dealings early in his career (I’ll do a post on that eventually), but see my profile on him here: (https://www.timothysykes.com/blog/the-billionaire-profile-series-warren-buffett/)

Image via REUTERS/Rick Wilking

Image via REUTERS/Rick Wilking

Warren Buffett has been incredibly successful, and he’s extremely wealthy. Warren Buffett’s wealth jumped by around $12.7 billion in 2013 alone. But how much is $12.7 billion anyway? Here are some facts about one of the richest men in the entire world that will absolutely shock you.

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99% of Buffett’s wealth was earned after his 50th birthday.

Buffett made $62.7 billion of his $63.3 billion net worth after his 50th birthday.

$60 billion — nearly 95% — is from after his 60th birthday.

Talk about long-term investment strategies.

Source: Fool (http://www.fool.com/investing/general/2014/07/18/i-prefer-to-keep-things-simple.aspx)

Berkshire’s Book Value beat the S&P 500 in 43 out of 44 years on a five-year rolling average basis.

Image via Steven Perlberg / Business Insider

Image via Steven Perlberg / Business Insider

From 2008 to 2013, the S&P 500 returned 128%, while Berkshire (based on book value per Class A share) returned 80%.

Source: Berkshire Hathaway (http://www.berkshirehathaway.com/2013ar/2013ar.pdf)

Among legends, Buffett has the longest track record for beating the market.

Image via Twitter, PlanMaestro

Image via twitter, PlanMaestro

That chart compares investors with the S&P 500 over time. You can see the longevity of Buffett’s outperformance is greater than that of other great investors.

Source: Business Insider (http://www.businessinsider.com/ranked-the-greatest-investors-of-all-time-2014-7)

Buffett’s net worth of $63.3 billion is greater than the combined 2013 GDP of Ghana and Cambodia.

Ghana’s 2013 GDP was estimated to be $47,928,717,949.

Cambodia’s 2013 GDP was estimated to be $15,249,684,397.

Warren Buffett’s wealth currently makes him the world’s third-richest man.

Source: Forbes (http://www.forbes.com/profile/warren-buffett/)

In 2013, Buffett made on average $37 million per day — that’s more than what Jennifer Lawrence made the entire year.

According to Forbes, Jennifer Lawrence was the second-highest-paid actress in 2013 and she is estimated to have made $34 million that year.

Warren Buffett made $37 million per day in 2013.

Source: MarketWatch (http://www.marketwatch.com/story/warren-buffett-made-37-million-a-day-in-2013-2013-12-18)

You could pay the college tuition of six NYU students with what Buffett made in a single hour in 2013.

NYU is the most expensive university in the U.S. — four years there cost $247,908.

Buffett made $1.5 million per hour in 2013.

Source: CNBC (http://www.cnbc.com/id/101282625)

Buffett made his first stock purchase the same year that Pearl Harbor was bombed.

Warren Buffett’s first stock purchase was in 1941 — he bought three preferred shares for himself and three for his sister at $38. The stock dropped nearly 30%, and when it finally got back up to $40, Buffett sold. A few months later, the stock soared to $200.

Pearl Harbor was bombed on Dec. 7 of that year.

Source: Old School Value (http://www.oldschoolvalue.com/blog/investing-perspective/warren-buffett-career-timeline-investments/)

Buffett has so far donated enough money in his lifetime to build four Apple “Spaceship” Campuses.

Buffett has donated a lifetime total of $20 billion — the second-highest amount (following that of Bill Gates).

The Apple Campus is a $5 billion project.

Source: Forbes (http://www.forbes.com/sites/alexmorrell/2013/07/08/buffett-donates-2-6-billion-in-berkshire-hathaway-shares-to-gates-foundation-other-charities/)

You could increase the annual salary of every North Korean living in Pyongyang by 50% if you took Buffett’s donation to the Bill and Melinda Gates Foundation and distributed it evenly to them.

North Korea’s capital Pyongyang has a population of 2.843 million. And the average North Korean makes an estimated $1,000 to $2,000 per year (so we used the number $1,500).

Buffett donated $2.1 billion to the Bill and Melinda Gates Foundation. That means that every person in Pyongyang would hypothetically get $738.65 — an amount that is 49.2% of the annual per capita earnings in North Korea.

Keep in mind, however, that Buffett’s donation is in class B shares.

Source: CNBC (http://www.cnbc.com/id/101838903)

Buffett is “ready” to double his investment in renewable energy — bringing the total to an amount that could build 46 Burj Al Arabs.

Jumeirah Hotels

Jumeirah Hotels

Buffett already has $15 billion invested in solar and wind energy, and he is prepared to commit another $15 billion.

Dubai glitzy hotel, the Burj Al Arab, cost $650 million to build.

Source: Bloomberg (http://www.bloomberg.com/news/2014-06-10/buffett-ready-to-double-15-billion-solar-wind-bet.html)

In 2014, a Singapore man bid $2.2 million for lunch with Buffett. That amount could’ve provided 9,746 students with a calculus textbook.

In case you don’t have college-age kids yet, textbooks are extremely expensive. The one that we used in our calculation costs $225.72.

Source: Omaha.com (http://www.omaha.com/money/singapore-man-to-pay-about-million-for-lunch-with-warren/article_3f3f32d0-ed9c-11e3-8c75-0017a43b2370.html)

Berkshire Hathaway’s cash balance is at $50 billion — that’s equal to the entire GDP of South Dakota plus 45 Airbus A318s.

Berkshire Hathaway currently has over $50 billion in cash.

The GDP of South Dakota in 2013 was $46.732 billion.

An Airbus A318 costs $71.9 million.

Source: Bloomberg News (http://www.bloomberg.com/news/2014-08-04/buffett-waits-on-fat-pitch-as-cash-hoard-tops-50-billion.html)

If you invested $1,000 in Berkshire Hathaway in 1970, that amount would be $4.86 million higher today.

Berkshire Hathaway closed at $41 at the end of 1970.

On Tuesday, Berkshire Hathaway closed at $199,562.

Source: Yahoo Finance (http://finance.yahoo.com/q/hp?s=BRK-A&a=07&b=12&c=2000&d=07&e=12&f=2014&g=d&z=66&y=3498)

If you invested $1,000 in Berkshire Hathaway in 1980, that amount would be $532,165 higher today.

Berkshire Hathaway closed at $375 on Aug. 12, 1980.

On Tuesday, Berkshire Hathaway closed at $199,562.

Source: Yahoo Finance (http://finance.yahoo.com/q/hp?s=BRK-A&a=07&b=12&c=1980&d=07&e=12&f=2014&g=d&z=66&y=8514)

If you invested $1,000 in Berkshire Hathaway the year that Buffett became the majority shareholder, that amount would be $10.5 million higher today.

In 1964 — the year Buffett became a majority shareholder — the stock was valued at $19 per share.

On Tuesday, Berkshire Hathaway closed at $199,562.

Source: Yahoo Finance (http://finance.yahoo.com/q/hp?s=BRK-A&a=02&b=17&c=1960&d=07&e=12&f=2014&g=d)

To see a few other facts about this billionaire, check out Business Insider (http://www.businessinsider.com/mindblowing-facts-warren-buffett-2014-8?op=1)

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2 comments

Timothy Sykes

Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my millionaire challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don't forget to check out my free Penny Stock Guide, it will teach you everything you need to know about trading. :)

  1. Mike Arnold

    Good article, Tim. While I am interested in learning trading strategies — yours appear particularly profitable — I am primarily a longer-term investor in small caps that I believe offer 100% upside potential in 12 months. Typically I’m looking for businesses at an earnings inflection point. As you teach, one can only achieve compound returns that crush the S&P by doing something different than traditional thinkers. Warren advises folks with small accounts to invest in small companies where extraordinary returns are possible.

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