Quick-quiz. Match the place of residence given below to the following men.
World’s Richest Man – Carlos Slim
World’s Second Richest man – Bill Gates
World’s Third richest man – Warren Buffet
World’s Fourth richest man – Bernard Arnault
Where do they stay?
- World’s Largest House
- World’s 2nd largest house
- World’s 3rd largest house
- World’s 4th largest house
Answer: None of the answers given above matches the place of residence of the men given above. Isn’t that so odd? The richest men not living in the biggest houses. Then, what is the use of having so much money?
The shocker: The 3rd Richest man in the world stays in a five bedroom house brought in 1958 and that today is valued at around USD 700,000 (although this works out to Rs 3.5 crore if we take the current exchange rates, it is only around a crore in PPP terms). Today almost 10% of Indians would be having a house in excess of Rs 1 Crore.
So does that mean that Warren Buffet is a miser? With over $50 Billion in wealth, he still stays in a 53-year-old house that too with “just” five bedrooms. He surely must be bluffing about his wealth, because, we know for sure he is not bluffing about the house! Or is he? Well not at all. His known public wealth is 50 billion dollars and growing.
So why does the world’s third richest man stay in such a small house?
No, Warren Buffet is not stingy or miserly by any means; not anyone who donates 30 Billion to charity can be one. Rather, he has mastered the art of creating wealth.
Wealth is not created just by investing, but, also by avoiding unnecessary expenses. It does not make one stingy, rather, it makes him frugal. This frugality has helped him grow his wealth year on year.
His logic is simple: An extra ten rooms in the house is not going to create any major difference to him. However, the same money if invested rightly (of which he is a master) can be made to grow to probably ten times the same amount.
Yes, it is not easy for all of us to be like him. Others might say that he can “afford” to be frugal because he already has so much wealth and does not need to worry about anything else. True, but he has stayed the same way even when he was poor!
If Warren Buffett can do it on such a large scale, we can at least do it on a smaller scale. The secret lies in falling in love: In love with growing wealth. If you can fall in love with the happiness that one gets by seeing his wealth grow, you will automatically start repelling the evil twin: spending.
Initially it may be very difficult and you may not even be able to follow. But, once you get accustomed to it. you realize that the pain of sacrificing current consumption is much smaller as compared to the thrill of creating long term wealth. The 20,000 Rupees saved by going for a simple phone (rather than a gold studded one) can in the coming years grow into Rs 200000/- and give you the power to be a giver.
The fundamental is to make sure we give priority to the needs and minimize the wants. Happy frugality.
Nice.. very nice article……
Money has got its own respect and needs to be invested where it gets that respect
Warren Buffet is not just frugal. He has kept for himself what is sufficient to lead a comfortable lifestyle. rest of the money is being used in business for increasing productivity, employment & income for millions of the world citizen. This man is the true socialist.
Man needs comforts of life to be comfortable, not for vulgar show off. Creation of wealth creates employment, productivity and sense of self-belief in so many people. Seeing the smiles of so many is much more rewarding than wealth. Buffet has set example by practice, not by preaching, as we Indians are master of. Hats off to Warren Buffet.
It is people like Warren Buffet throught the last couple of hundred years that made Americe the strong nation that it was till the greed of the last two cecades brought it down But that zeal and characteristic ability and desire to master the circumstances and win will put it back on top But compare that to our country which has never conquered anything and where the Ambanis build their billion dollar homes – we will always remain third world even if we fly to the moon and take all theoutsourced business from them – Jehangir Cama
what about the other 2 rich guys houses? I am sure every one wants to know about it.
You are a total idiot! You missed the whole point of the article!
This is a social/true bussiness man, how he saving the money,
TOI and other media including electronics media should come with such maral boosting news/story to build character of nation and its native. KUDO to TOI.
We are sick of now reading about rape, murder, corruption, all bad things as if only this things are there in this world. Come and report positive things of the life and positive things happening around and inside India so that we can follow it to.
Good reprting
having more money does not make a man big . many of we indians think that when v have more money we should show it to others by having a big house, big car, costly dress and all but most of us never ever think of giving our hands to the poor and needy. in america for rich people charity is an order of the day and so is mr. warren.
they r least like mr. ambani who wants to show that he lives in the most costly house in the world. one thing, when v all go up there all of us have to live in the same house with out even a roof.
let us all help others, the poor and poorest and the needy who r millions even in india alone.
vijayan govindan
bangalore.
SPENDING, BUYING, SPLURGING- HELPS ECONOMIES OF THE WORLD (TO GROW, FLOURISH)! FOOLISH??? ULTIMATELY WHAT YOU DO FOR YOURSELF IS WHAT MATTERS FOR YOU, WHAT BRINGS YOU HAPPINESS. WORLD WILL ALWAYS BE THE SAME, MADE OF ALL KINDS. THEREFORE THE OPPORTUNITIES WILL ALSO BE THERE FOR YOU- JUST AS IT PROVIDES WARREN BUFFET WITH.
"Today almost 10% of Indians would be having a house in excess of Rs 1 Crore." :absolutely false.
To understand that Sir, I would suggest you do read the current realty markets in India. By knowing what we have on the grounds, 10% would be an underestimated or very easy number.
You are right Ashok.. 10% is a lesser number
AWESOME Article. I am so inspired and will implement the same in my life.
I belive in this message from my Amway Business Mentor "success does not depend on how much bank balance you have but Success depends on how many lives are better off because you lived".
Nice one, but am aware of it.
Ambanis saheb, there is no way this article is hitting at you because this talks abt Richest People but not richest theifs , smugglers , black marketeers, So u r exempted from this article..
He is true excample to show that you can be happy if money is your slave and not your master
Super article and in sharp contrast to the show-off ambani. Hundreds are starving!, committing suicide for want of basic needs! and striving to pay school fees.
Warren has proven that he KNOWS what he wants … be it his dwelling or in astute investments !! Gr8 article !!
agree with the simpleness of great Mr.Warren. In fact we have to develope the quality thinking and living. I am admirer of great Mr.W.B. and try to insist these quality in childrens. Salute to this gentleman.
Warren Buffets are made because of the greed of the majority who are after money- no holds barred. So geeed is not bad, afterall.
if buffet was born in our generation he would be worst dan us..
Neither like the Ambanis nor like Buffet…both are extremes.
Good to see simplicity of Mr Warren buffet, iam inpired by his life style & thinking
There are always contradiction to all Hypothesis. I donot know much about the Richest, but 2nd richest and 3rd richest are just opposite. One roam in personal jet, other travel in commercial flight. I hope the article could say about Bill Gate's mansion in Oregon. I am yet to hear about Warren Buffet's charity. (at least not publicized). Once Bill Gate told "I donot have any thing common with that man (WB), so a 15 min meeting is enough". Mukesh Ambani (Reliance) or Bill Gate (Microsoft) employes (feed people) much more than Warren Buffet employes. All of them know, they cannot take money to heaven. So earning the money for whom?
YOU missed something
When Bill Gate said "I donot have any thing common with that man (WB), so a 15 min meeting is enough".
he ended up in a 3-4 hour meeting with me….
🙂
a nice person who is simple and believes in charity. r s