28th April 2023: Reasons why Warren Buffet never purchases a new vehicle. Why is that? Who is Warren Buffet? Read ahead to know more.
The reduction in the value of new automobiles shortly after it is driven for a while does not appear to be something Warren Buffett enjoys. As a result of the inherent production cost, which Buffett is aware of, new automobiles lose value as soon as they are driven off the lot.
The American business tycoon, philanthropist, and investor Warren Edward Buffett presently serves as Berkshire Hathaway's chairman and CEO. He is a well-known basic investor across the globe. Warren Buffett referred to as the "Oracle of Omaha," is one of the greatest investors in history.
He was born in Omaha, Nebraska in 1930 and showed an early aptitude for business, selling chewing gum, Coca-Cola, and magazines door-to-door as a child. He went on to study at the University of Nebraska and later at Columbia Business School, where he learned about the value investing philosophy that would shape his investment strategy for the rest of his life.
Buffett began his career as an investor in the 1950s and 60s, and quickly gained a reputation for his shrewd investment decisions. Over the years, he has amassed a fortune through his company Berkshire Hathaway, which has investments in a wide range of industries, including insurance, energy, and retail. Buffett is known for his simple and straightforward approach to investing, focusing on companies with strong fundamentals and long-term growth potential. He is also known for his philanthropy, having pledged to give away most of his wealth to charity.
Buffett also controls dozens of businesses, including the food chain Dairy Queen, the battery manufacturer Duracell, and the insurance Geico.
However, despite being the 5th richest person in the world, he seeks value in all aspects of his life, not only business and investment, which is one of the secrets to his success. He also leads a modest and simple lifestyle.
When Buffett purchases automobiles, he always receives a discount for any visual flaws that would make the vehicle need to be sold.
Holding true to his keen interest in cars, Buffett purchases a nearly brand-new automobile for less than the full retail price in order to avoid the depreciation that occurs to the automobile after driving for a considerable amount of time.
Buffett often drives a secondhand automobile since he buys new cars and keeps them for at least seven years. Only when his family nudges him, does he upgrade. For holding an automobile, he prefers an eternity. Buffet prefers holding on to an automobile for as long it lasts and only upgrades when he nudges him to do so.
Susie Buffett, the daughter of Warren Buffett, said in a BBC program that her father purchased automobiles at lower costs, such as ones that had sustained hail damage. The automobiles were repaired, didn't appear hail-damaged, and gradually became a staple of the Buffett way of life.
Buffett often has his daughter handle the automobile shopping and purchases for him since he doesn't want to waste a day doing it. Buffet places a high value on his time and doesn't want to use it on automobile purchasing.
As Buffet is someone who enjoys safety and luxury that comes in style, he was last known to drive the 2014 Cadillac XTS. Even though this model is fairly old and is not one of the high and luxury cars that people often associate with billionaires, it is true to Buffet's simple yet elegant nature that shows humility and value.
The billionaire has had this car for quite a few years as he seems to prefer the seamless experience and simplicity of the vehicle then having to buy new models and develop a sense of how that car works or having to learn to take care of them.
As clearly evident, Buffet is not someone who identifies his cars as a show of his wealth or status in society but only considers them as an item of utility. His quotient for a quality life depends on simplistic pleasures that one gains out of monotony and habit.
Buffet shared, “I have everything in life I want it’s a very simple thing. If there’s anything that money could buy there are things money can’t buy, but if there’s anything money could buy that I wanted, I do it this afternoon. I wouldn’t have any problem with that at all. I do not think that the standard of living equates with the cost of living beyond a certain point. I mean, up to a certain point there’s no question that it does in terms of having good housing, good health, good health service, good food, everything, the transportation. But there’s a point I think if anything you start getting inverse correlation. My life would not be happier and that it would be worse if I had six or eight houses or you know a whole bunch of different things. I could have it; it just doesn’t correlate. So I have everything I have. I mean you can’t have more than that, and that doesn’t really make any difference up to a point. I mean you can start thinking a lot differently when you got to x what happened, but when you get the 10x or 100x, 1000x, it just doesn’t make any possible difference.”
