5 things that make Warren Buffett abandon his famous austerity

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Although Warren Buffett's wealth is estimated at $157.2 billion, according to Forbes data, the head of Berkshire Hathaway is still known for his austere lifestyle, an approach that is not limited only to his investment decisions, but extends to the details of his daily life.

Buffett lived for decades in the same house he bought in 1958 in Omaha, Nebraska, for $31.5 thousand, while keeping Berkshire Hathaway's headquarters away from Wall Street, which strengthened his image as the "sage of Omaha."

But the American billionaire was not austere in everything. There are a limited number of areas on which he saw that spending would achieve real value that exceeds the cost.

In 2010, Buffett pledged, along with Bill Gates and more than 100 billionaires, to donate most of his wealth to charity as part of the “Giving Pledge” initiative, according to what “Go Banking Rate” magazine reported, and “Arabia Business” reviewed it.

He has already given approximately $62 billion to charitable institutions and initiatives, and he has repeatedly confirmed his intention to donate about 99% of his wealth during his life or after his death.

Buffett believes that supporting the community and investing time or resources in volunteer and charitable work represents one of the most meaningful and influential aspects of spending.

Buffett broke one of his personal rules when he agreed to purchase a private plane for the company in order to reduce commuting and travel time.

He initially bought a plane for $850,000, before later purchasing a used plane for about $6.7 million, a deal he himself jokingly described as “indefensible.”

Although he admitted that it was a luxury, Buffett considered that saving time and flexibility of movement justified this spending, especially with his intense work schedule and his frequent travel within the United States.

Buffett stressed in his annual letters to shareholders that there is a big difference between price and value, as he believes that “price is what you pay, but value is what you get.”

Follow this principle when purchasing everyday goods or long-term personal assets, such as homes, cars, furniture, and clothing.

He explained that he prefers to buy high-quality products when they are offered at discounted prices, rather than purchasing cheap products that require frequent replacement and a higher cost in the long run.

Buffett constantly encouraged investing in oneself as the best investment an individual can make.

He called for spending money and time on education, acquiring new skills, learning languages, professional development, and taking care of physical and mental health.

He stressed on more than one occasion that a person is his greatest asset, and that any investment that increases his capabilities and knowledge will return returns that far exceed its initial cost.

He also stressed the importance of preserving the mind and body, considering that both should accompany a person throughout his life, which makes caring for them a priority, not a luxury.

Buffett devoted a large portion of his time to reading and thinking, considering this habit to be one of the most important reasons for his investment success.

He said that spending daily hours reading and meditating helps him make calmer and less impulsive decisions compared to many businessmen.

That is why buying books and building knowledge remained one of the few areas that he did not hesitate to spend on, based on his conviction that continuous learning represents a long-term investment in the mind and the ability to make decisions.