Warren Buffet: House and Car

Warren Buffett lives in the same home he bought in Omaha for $31,500 dollars in 1958. His home is a very well-kept gray stucco house in the Hollow Historic District of Omaha, Nebraska. Although this 6,000 square foot home has a real estate value of seven hundred thousand dollars, it is still not considered a mansion, by any means, since a mansion is usually at least ten thousand square feet. Even what is considered standard amenities in high-end real estate housing, Mr. Buffett’s fifty-five year home has no private gate, no security guard, and no surveillance cameras on his property.

If his house was bought in today’s dollars, it would cost around two hundred fifty thousand dollars. Warren Buffett denoted his 2006 Cadillac DTS when his daughter, Susie, informed him it was in embarrassing. Mr. Buffett only average about thirty-five thousand miles a year on a car so Buffett buys a new vehicle very infrequently. Warren Buffett, concerned that he might not get the best price had his daughter, Susie, pay a visit to Huber Cadillac in Omaha to negotiate the purchase oh his behalf. As a result of these negotiations, Buffett bought a new 2014 Cadillac sedan.

Coincidentally, a short while before Buffett made his new Cadillac purchase, Warren Buffett met with General Motors Chief Executive, Mary Barra, in May of 2014. Buffett’s holding company, Berkshire Hathaway, had decided to cut it stake to the tune of 30 million shares during the first quarter. Mary Barra, while traveling with Buffett in his 2006 Cadillac, was asked by Warren what made the new Cadillac a better automobile. Mary, off the top of her head, gave Warren fifty things that were better than his 2006 Cadillac, in their six-minute drive to lunch.

In this brief few minutes, she had sold Warren on purchasing a new Cadillac. Warren Buffett in 2014 said that GM current crisis will pass. Four short years later, Buffett as usual, was right on target. General Motors, along with the then-troubled other two major U.S. automobile manufacturers are seeing sales increases not seen in years. along with quality, engineering, and reliability in its products that it has not seen since the superior quality and sales of the imports rose during the seventies energy crisis. Again, Warren Buffett’s prediction of the American Automotive industry overcoming its financial troubles and being highly successful again is correct!

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