Warren Buffet has a son who has had a successful career as an ambient music producer.
He’s released over a dozen albums, and had some of his work feature in the score of the great Kevin Costner film “Dances With Wolves.”
The problem is, Peter Buffett could have been incredibly wealthy, and fairly unknown music producer, but a decision he made at the age of 19 made sure that didn’t happen.
Back in 1977, Buffett’s son inherited $90,000 from the sale of his grandfather’s farm.
Warren took his son’s inheritance, and converted it into Berkshire Hathaway stock.
At that point, young Peter had a decision to make. Let that $90K ride in Berkshire Hathaway, or do what Peter eventually did. Drop out of Stanford, and cash in his holdings so he could “discover his sound” according to a report in a publication called boss hunting.
Here’s the painful part for Peter. If he would have kept the money in Berkshire Hathaway, that inheritance would now be worth $200 million.
The stock has yielded returns in excess of 250,000% in the past 44 years.
By the way, Warren Buffett has pledged to distribute 99% of his wealth to philanthropic causes.
In 2014, the Washington Post reported that each of Buffett’s children, including Peter, have a $2 billion foundation funded by their dad. So he’s making sure his did’s do something positive with his fortune.