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Warren Buffett’s wife reportedly refused to pay $4 for a coffee in Sun Valley.
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Astrid Menkes’s reaction is in line with her husband’s approach to life, investing and dealmaking.
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Buffett lives simply, seeks value as an investor, and makes a hard bargain when he does deals.
Warren Buffett Dislikes High inflation, and apparently the billionaire’s wife does, too. Astrid Menkes refused to pay $4 for a cup of coffee in Sun Valley this week, noting that she “could get a pound of coffee” for that price elsewhere, The New York Post reported Thursday.
Her reaction wouldn’t surprise Buffett’s close followers or shareholders Berkshire Hathaway conglomerate. The 92-year-old investor ranks among the world’s richest thanks to his $114 billion Berkshire shares, but he lives a famously frugal lifestyle and has made wise spending a cornerstone of his investing and deal-making approach.
Actually, Buffett still live In the same house in Omaha, Nebraska that he bought for $31,500 in 1958. He Stop by McDonald’s For breakfast on the way to work each morning. He has also earned a modest annual salary of $100,000 More than 40 years old.
The Berkshire CEO even named it after his private jet.It is indefensibleBecause he felt so guilty about the indulgence. Buffett’s business partner and Berkshire vice president, Charlie Munger, might be a little more frugal. Munger’s idea of traveling in style, Buffett joked, Air-conditioned busand only persuaded him to buy a membership from Berkshire-owned NetJets by installing a coach seat on his plane.
Munger is 99 now, but in his younger years he would fly commercially from Los Angeles to Omaha every year for Berkshire’s annual shareholder meeting — his shareholders cheered on the fact that he was saving them money.
“It was full of wealthy shareholders,” Munger recalled during this year’s meeting. “And they were applauding when I came to the coaches’ section. I really liked it.”
Buffett and Munger run Berkshire in a similar way. Both men are value investors who specialize in buying stocks and acquiring undervalued businesses. They also protect the company’s money and really hate wasting it.
When Buffett posts a company’s cash, he increases his opinion and reduces the risk of losing money by carefully structuring his deals, negotiating very low prices or very high interest rates, or securing rewards like preferred stock and warrants.
For example, when Berkshire Rich insurance company bought Last year, Buffett refused to budge on the price tag, subtracting from his offer the $27 million fee the rich man paid Goldman Sachs to advise on the deal.
Given Buffett’s frugal nature, and the fact that he made financial discipline a cornerstone of Berkshire culture, it’s no wonder his wife overpaid for her morning joe.
Read the original article at Business interested