Warren Buffett's frugality: Billionaire rejects daughter's loan request
One of the wealthiest people in the world, Warren Buffett, told his daughter, who asked him for a loan to renovate her kitchen, to go to the bank for that matter. This was revealed in a report by Benzinga, which provides financial and market information.
According to American sources, the net worth of Warren Buffett oscillates around $100 (CAD 135) billion and may change depending on the financial markets and investments.
He, as a father, has also set various examples and standards for his children and the latest story revelation made it clear that he is as strict as a father like every other middle-income parent - wrote "The Economic Times" on Tuesday, commenting on Buffett's decision.
A documentary film includes the story of the billionaire's daughter. When Susan Buffett asked to borrow $41,000 (around CAN 55,000) to renovate her kitchen, her father refused. He suggested she go to the bank like anyone else, take out a loan, and learn financial responsibility lessons. The daughter admitted that she was a bit surprised by the refusal. She added that her father was widely known for being overly frugal.
According to Susan, growing up in the Buffett family was associated with simplicity and saving without extravagant expenditures. She received pocket money, which she spent on candy or magazines, but did not get extra money. Warren Buffett himself is said to lead a modest and frugal lifestyle.
The financial strength of Buffett's fund
At the end of August, CNBC reported that Warren Buffett's fund—Berkshire Hathaway—became the first American company outside the technology sector to reach a market capitalization of $1 trillion (around CAN 1.36 trillion). Cathy Seifert, an analyst at CFRA Research, commented that this achievement is proof of the company's financial strength and the value of its brand.
At the beginning of August, we read that Warren Buffett's fund, Berkshire Hathaway, sold nearly half of its shares in Apple in the last quarter while simultaneously achieving a record amount of cash: $277 billion (around CAN 375 billion).
At the end of the second quarter, the value of Apple shares held by the fund was $84.2 billion (around CAN 114 billion), which means that over 49 per cent of the shares in the technology company were sold. Despite this sale, Apple still constitutes the largest part of Berkshire's investment portfolio.
