Heard of Bill Gates? Well, yes, most of us know of him and would probably even recognise him if by some wild chance he walked our way. And Warren Buffett? Probably not.

Yet here's a guy whose net worth, US$52.4 billion, is a trifling US$3.6 billion short of Bill Gates' personal fortune. A remarkably humble chap, Buffett was recently interviewed on American radio and revealed a treasury of clues as to how one man can amass such wealth - and what to do with it once you've earned it.

Born in 1930, Buffett is often hailed as the 'Sage of Omaha'. At the tender age of 11, he bought his first stock purchase of three Cities Service shares at US$38.25 each. When he later hurriedly sold them for US$40 each and then watched their price rise to US$200, Buffett learned his first major business lesson: patience is a virtue.

From small acorns
At 14 he used savings from his newspaper delivery round to buy 40 acres of farmland which he rented out to tenants. Since then, Buffett has acquired 63 businesses operating under his holding company, Berkshire Hathaway, which has owned stakes in some of the world's largest brands including American Express, Coca-Cola and Gillette. Buffett drives his business by acquiring economically efficient companies and appointing the best people to run them in their own way.

Yet this immensely rich and powerful man lives a simple, unpretentious life. He lives in the same small, three-bedroomed Omaha house that he bought when he married 50 years ago. He says that the house contains everything he needs. He drives himself around and never travels by private jet, despite owning the world's largest private jet company. He avoids the glitz and glamour of high society, preferring to watch TV quietly at home.

A meeting of minds
Five years ago, a meeting was arranged at which Bill Gates and Warren Buffet - the world's greatest entrepreneurs - would meet for the first time. Gates felt he had nothing in common with the unassuming Buffett and scheduled just half an hour for the event. In fact, the meeting lasted for ten hours, during which time Bill Gates became a genuine devotee of the Omaha magnate.

So what was it that Gates learned? Is Buffett just another fabulously rich but miserable recluse, inhabiting a lonely world with no room for the real world outside? Far from it. Buffett's stance is positive and clear. He believes passionately that most of his wealth should be handed back to the society which allowed him to generate it.

'I work in a market system that happens to reward what I do very well - disproportionately well. Mike Tyson, too. If you can knock a guy out in 10 seconds and earn US$10 million for it, this world will pay a lot for that. If you're a marvellous teacher, this world won't pay a lot for it. If you're a terrific nurse, this world won't pay a lot for it… I do think that when you're treated enormously well by this market system … then society has a big claim on that.'

Buffet's commitment to this principle has seen him give vast sums to good causes including the largest ever charitable donation, a breathtaking US$30 billion, made to the Bill and Melinda Gates Foundation in 2006. Recently he offered an online auction opportunity to share a meal with him. The winning bidder paid a cool U$$650,100 for his 'buffet with Buffett', a sum which went to one of the entrepreneur's favourite charities: The Glide Foundation.

And the most valuable secrets of Buffett's success? His advice for fulfilment goes something like this.

• Stay away from credit cards and invest in yourself.
• Money doesn't create man: it's man who created money.
• Live your life as simple as you are.
• Don't do what others say. Listen to them and just do what you feel is good.
• Don't go on brand names: wear the clothes in which you feel comfortable.
• Don't waste your money on unnecessary things. Spend it on those who are really in need.
• It's your life, so why give others the chance to rule it?

Have you got a story to tell? Or any comments or questions about this article? If so, contact us today!

Back to top