Why Warren Buffett's Youngest Son Didn't Know His Dad Was A Billionaire

Imagine waking up one day to find out that one of your parents has a net worth of more than $1 billion. Well, that's essentially what happened to Peter Buffett, the son of former Berkshire Hathaway CEO Warren Buffett. Seeing as Warren Buffet is one of the richest men in the world, this may seem hard to believe. However, Buffett has always been frugal, and Peter's ignorance of his father's wealth is plausible when you look at the investor's lifestyle.

Despite being on the Forbes billionaire list, Buffett is renowned for his dedication to not wasting money and living below his means. He lives in a modest house, drives a sensible car, and doesn't splurge on food or fancy toys. These habits extended to his parenting, as Warren worked to keep his kids down to earth: His middle son, Howard, had to clean gutters and mow lawns growing up, while his siblings took the bus to attend public school. Neither Peter nor his neighbors even had a clear sense of what the legendary investor actually did for a living.

Thanks to his upbringing, Peter didn't really understand his family's level of wealth until well into his 20s, when Forbes published a roundup of rich Americans. Speaking with Forbes about his reaction to the news, he noted, "My mom and I talked at some point, because there he was, on this list and we laughed about it, because we said, 'Well, isn't it funny? You know, we know who we are, but everybody's treating us differently now.'"

Warren Buffett might be worth close to $150 billion, but few details about his day-to-day lifestyle indicate he's that well endowed. To begin, Buffett has been living in the same Nebraska home for over six decades. He bought it back in 1958 for $31,500, and spent all those years watching it appreciate while not having to spend a cent on moving expenses. Considering fellow billionaire Jeff Bezos owns a $175 million Beverly Hills estate, it's fairly easy to see where Peter was coming from. 

Additionally, Warren Buffett doesn't spend too much of a fortune eating out, and famously gets a McDonald's breakfast worth around $3 every day. Never one to miss out on a deal, he even uses coupons to cut down on his bill at the fast food chain when he can.

Buffett is not too fond of possessions, either. He's avoided buying supercars for fun, and drives a 2014 Cadillac XTS instead. Staying away from one of the surprising financial habits of most millionaires and high-net-worth individuals, Buffett also avoids leveraging credit cards. In fact, Buffett never leaves the house without cash because he likes paying with it so much. Furthermore, Buffett has never drunk alcohol or smoked, habits that can be detrimental to both one's health and wallet. Instead, he enjoys reading or playing bridge with friends.