11 Lies About Warren Buffett You Should Stop Believing

Warren Buffett is one of the best-known investors in the world, becoming a billionaire with his company Berkshire Hathaway.

But there are some misconceptions about the man that have followed his career. After all, he’s had success over decades as a public figure investing in all types of companies.

So what do you really know about Warren Buffett? Check out some of these lies that may need to be busted.

Buffett may have billions of dollars of Berkshire Hathaway’s portfolio in cash, but he has said in the past that he hates cash. Cash doesn’t make more money. The company does have a large cash position, however, Buffett would prefer to find ways to invest it if the right stock or company comes along.

It may be surprising to know that Buffett doesn’t have a computer in his office, but that doesn’t mean he’s afraid of technology. In fact, as of June 2022, more than 40% of Berkshire Hathaway’s stock portfolio was invested in Apple stock. The company also has holdings in cloud computing company Snowflake, video game company Activision Blizzard, and smartphone service provider T-Mobile.

Buffett is a little more sentimental than you might expect. In a 2011 Berkshire Hathaway report, Buffett admitted that the best investment he ever made was in wedding bands. He’s been married twice: first to his wife Susan, who passed away in 2004, and then to his second wife, Astrid.

Buffett’s success hasn’t come just from picking stocks. In fact, he’s invested in other companies like Benjamin Moore paints, See’s Candies, and GEICO insurance, which provides homeowners and auto insurance.

Pro tip: If you’re looking for ways to save money on your car insurance, consider bundling home and auto insurance with the same company.

Buffett has admitted that not all of his investments pay off. Some stocks haven’t succeeded the way he hoped they would, causing some hits to the Berkshire Hathaway portfolio. The duds included Dexter Shoe Company and grocery store chain Tesco.

There are also stocks that aren’t in Buffett’s portfolio that he will admit he wishes he had bought and regrets not doing so when he could. While Berkshire Hathaway does include Apple in its portfolio, other successful tech stocks like Amazon and Google are missing from the portfolio. Buffett has said he regrets not getting them when he could.

While Buffett may buy and sell plenty of individual stocks for his Berkshire Hathaway portfolio, he doesn’t recommend individual investors do the same thing. Instead, he has suggested that if an investor wants to start building an investment portfolio, they should consider buying index funds. “For most people, the best thing to do is owning the S&P; 500 index fund,” he said at an annual Berkshire Hathaway meeting.

Buffett lost out on billions of dollars after selling airlines in 2020. The COVID-19 pandemic caused a steep decline in the stock market, and airlines took a big hit when travelers stayed home. But the stocks were on the rebound by the end of that year, leaving Buffett out of any potential profits after he sold Berkshire’s positions.

Berkshire Hathaway may be a household name now, but it wasn’t when Buffett first invested in the company in 1962. In fact, it was a failing textile company that he invested in because he thought he could make a profit when other textile mills in the U.S. were closing around that time.

One money lesson you can learn from Buffett is to stay frugal no matter how much you may have. You may be surprised to find out that the Oracle of Omaha actually still lives in Omaha, and he doesn’t own a huge mansion. Instead, Buffett continues to live in the modest home he bought in 1958.

Buffett may have splurged a little when he bought a Cadillac in 2014, but the car has a retail price of around $45,000. That’s a far cry from an expensive sports car or high-end luxury car that you may expect one of the richest men in the world to own. He also rarely buys new cars, preferring to hold on to his vehicles for several years.

Warren Buffett continues to find success as an investor with Berkshire Hathaway’s portfolio. But while you can learn how to invest your money by knowing where Buffett puts his cash, you also may want to stick to what’s best for you as you build your investment portfolio.