Warren Buffett, the most famous investor of our time, is currently valued at $73.7 billion, making him the second wealthiest man in the world. It’s hard to imagine what one would do after accumulating all that wealth, and what they would buy, but it’s safe to say there’s some buying trends— even amongst the millionaires and billionaires.
One of those buying trends would definitely be sports teams. Sports teams, generally, are extremely expensive which means the only people who they’re available to are the millionaires and billionaires; in some cases a few team up to make a purchase, as is the case with Kansas City’s soccer team Sporting KC. In fact, Buffett says sports teams are kind of like art: they go up in value pretty much because there are a lot of rich people that want to own them.
Even then, with so much money and some experience serving as the water boy for the Washington Redskins, people are left wondering why the Oracle of Omaha never took the leap and bought himself a sports team.
“You know, when I was a kid, I thought if I ever made a lot of money, I would go out and buy a team… Some of them don’t make much money, as you know, but if you’ve got a lot of money, what are you gonna do with it? Some people buy art, some people buy houses, some people buy boats. I invest, but I’m different,” he claims.
To put it in perspective, the most valuable team in the NFL has been the Dallas Cowboys for ten years strait. Even then, from 2008 – 2014, the teams value increased by only 43%. While that might seem significant, during the same period Berkshire Hathaway’s book value increased 75%. Plus, Buffett says he never found himself in the right city.
I think their may be another contributing factor as to why Buffett doesn’t have a sports team, though— his love for a frugal life. Buffett seems to lump sports teams into the category of “stuff”, which Buffett largely considers to be a pain in the neck.
“Professional sports teams are a hassle… fans would complain that you aren’t spending enough when the team loses.”
Warren Buffett has been known to hold minority stakes in minor league baseball teams including the Omaha Storm Chasers and the Omaha Royals.