The Bold Move That Cost Warren Buffett's Son $400 Million, And Why He Has No Regrets
The story of how one man traded a fortune for a dream.
In the realm of financial what-ifs, Peter Buffett's decision to sell his $90,000 inheritance of Berkshire Hathaway stock nearly 50 years ago is one for the books. Imagine being the son of Warren Buffett, one of the greatest investors of all time, and choosing to part with a stock that would later skyrocket in value.
Sounds like a financial faux pas, right? Well, not for Peter Buffett, who, at the tender age of 19, made a bold move that most people would label as sheer madness. Yet, in retrospect, it's a decision that Peter wholeheartedly embraces, not for the money he missed out on, but for something far more precious: time.
You see, when Peter received his inheritance, it wasn't just any sum of money—it was a piece of his grandfather’s farm, transformed into stock by his father’s investment genius.
This was no small potatoes; it was $90,000 worth of Berkshire Hathaway Inc. stock. A company that, under his father's stewardship, would go on to become one of the most valuable in the world.
However, to young Peter, this wasn’t an opportunity to ride the wave of his father's success, it was his ticket to freedom—a chance to chase a dream that couldn’t be bought with a portfolio or measured in dividends.
Scroll down for more details on this intriguing tale…
Peter Buffett and his Billionaire dad
Photo by Mark Sullivan/WireImage (Getty Images | Mark Sullivan)
So, what did Peter Buffett do? He sold the stock, walked away from Stanford University, and moved to San Francisco with a dream in his heart and a piano in tow. While many would argue that selling his Berkshire Hathaway shares was the financial equivalent of shooting himself in the foot, Peter had his eyes set on something intangible but invaluable: his passion for music.
He invested in a modest studio apartment, upgraded his recording gear, and dove headfirst into the world of composition.
As fate would have it, a casual conversation with a neighbor about his profession led Peter to a life-changing opportunity. He described himself as a “struggling composer,” which turned out to be music to his neighbor's ears.
The neighbor introduced Peter to his son-in-law, an animator searching for ad tunes for a new cable station—MTV. This meeting set Peter on a path to a successful music career, leading to the release of around fifteen studio albums and a life spent doing what he loves.
Peter had his eyes on something more valuable than money
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Fast forward to today, and we can all do the math: If Peter had held onto that $90,000 in Berkshire Hathaway stock, he’d be sitting on over $400 million. But ask Peter if he has any regrets, and you'll get a resounding "no." As he puts it, “I used my nest egg to buy something infinitely more valuable than money: I used it to buy time.”
Peter’s decision was one his father, Warren Buffett, likely applauded—not because of what was lost financially, but because of what was gained in life. Warren has long advised young people to pursue careers they would love even without the incentive of money. Peter took this advice to heart and crafted a life centered on passion rather than profit.
In the end, while Peter Buffett may not be a billionaire, he’s rich in ways that truly matter. His story is a powerful reminder that wealth isn’t just about numbers in a bank account—it’s about living a life that’s true to yourself, something that no amount of money can buy.
Jesse
