Peter Buffett, the son of famous investor Warren Buffett, made an important decision 47 years ago when he chose to sell his inheritance to “buy time.”
Although he could have made hundreds of millions of dollars if he had kept his shares, Peter doesn’t regret his choice and believes his father would agree with him.
When Peter was 19, he received $90,000, a portion of the proceeds from selling his grandfather’s farm. His father had invested this money in Berkshire Hathaway, making it clear that this would be the only financial support Peter would receive for personal use.
Despite knowing it was his entire inheritance, Peter sold his Berkshire Hathaway stock to follow his passion for music.
Peter left Stanford University, bought a small studio apartment in San Francisco, and upgraded his recording equipment. He spent his time improving his piano and music production skills.
Peter’s big break came when a neighbor, learning he was a “struggling composer,” introduced him to his son-in-law, an animator looking for ad music for a new cable station, which turned out to be MTV. This opportunity helped Peter build a successful career in music, and he has released about 15 studio albums.
If Peter had stayed in college and kept his $90,000 investment in Berkshire Hathaway, it would be worth over $400 million today. But Peter says he doesn’t regret his choice at all. He used his inheritance to buy something more valuable than money: time.
Peter believes his father would be proud of this decision because Warren Buffett has always taught that work should be about doing what you love, not just making money. Peter acknowledged that the money was a privilege and a gift he hadn’t earned.
Without spending countless hours perfecting his music, Peter wouldn’t have found his unique style and approach.
Peter used the money to pursue something he loves waking up and doing every day, which is exactly what his father advises young people to do. Warren Buffett often recommends that people choose careers they would enjoy, even if money weren’t part of the equation.