(Editor’s note: This interview was published on May 12, 2010.) If you look at the problems that have plagued the children of the world’s richest people, you might guess that Warren Buffett’s son (net worth: $47 billion) might not be well-adjusted. At the very least, you might think that he might not know the value of a dollar or a day’s work. As it happens, Peter Buffett, Warren’s younger brother, dropped out of college, sold his inheritance and followed his dream of becoming a musician (and received a number of awards, Emmy included, along the way). In his spare time, he has taught parents how to teach their children financial responsibility, which has now become a book, Life Is What You Make Of It: Find Your Own Path to Fulfillment.
Interviewer: Why did you want to write this book?
Mr. Buffett: For decades, people have been saying to me, ‘You’re Warren Buffett’s son? But you’re normal!’ It was nice for me that they were surprised that I was like this. One time, I was asked by Citigroup to speak at these wealth management talks they have for clients, and I talked about how to raise children so that they are not misled by money. People kept saying I should do a book. I thought it was good to think that my story could help people.
Did you have a grant? How much was it?
Yes. It was at any rate going to be ’60s-50 cents, maybe a dollar.
Did you have summer jobs?
Yes, as soon as I’m old enough. I really liked photography, and my dad owned a weekly newspaper, so I got a job there as a summer photo assistant, a low-level job helping out where I could.
You did a year and a half at Stanford and then you dropped out. How did your parents react to that?
In fact, none of us – me or my brother or sister – finished college. My parents always said, ‘Find something you love to do.’
In the book, you talk about how you got an inheritance from your grandfather, and it was Berkshire Hathaway shares, worth $90,000, that you sold. It will now cost $72 million. Do you regret that?
People don’t believe that I don’t believe, but it’s true. And I actually didn’t sell everything at once. It grew over time, so I was able to use that. But I have no regrets. I live a much more interesting life than I would have if I had just finished school and taken a job I didn’t like.
Did your father help develop your musical side at all? Did he sing in the house?
He was whistling and singing all the time. His favorites were “The Hut Sut Song” and “Mairzy Doats.”
Your dad dressed up as Axl Rose and did a Geico spoof power ballad earlier this year. Have you seen the performance? How can you measure it?
He’s a total ham, as I’m sure you can imagine. In terms of performance, I thought it was OK Emphasis on ‘OK’
You have a writing style similar to your father’s. But I can’t help but notice a distinct lack of sexual expressions, which is one of his trademarks. He always manages to marry traditional business wisdom with innuendo in Berkshire’s annual report.
[laughs] Of course you do. I make those jokes too, but not like him. I’ve actually called him that before. Two or three years ago, in the annual report, he made this joke about the girl wearing short shorts in the supermarket—I can’t remember what it was—and I was like, ‘Dad, come on, you can’t do this. This is too much.’ He just laughed.
You say that he has always been supportive of doing what you love, but has your father ever asked you to come to work with him?
Before I left Stanford, and I wasn’t sure what I was going to do, I was thinking, ‘You know, this guy’s kind of a long-term guy, maybe I should at least think about it.’ We discussed the possibility, and he sent me annual reports, but it wasn’t for me. And I didn’t get the idea from him that he wanted me to come and work for him, but I always knew that the door was open.
Your father famously gave almost all of his money to charity when he died. Do you ever like, ‘Come on. I threw a few bones.’
[laughs] I’m not really. We are all comfortable, and if we had excess money, we would like to give it to charity anyway. And actually, when we all turned 40, we got $1 million, which was unprecedented.
So how did it happen?
I think my mother somehow talked him into it. My sister and brother were facing major challenges in their lives, and my mother said, ‘This is going to change them. They are old, but it can help.’
Do you have any advice for Lloyd Blankfein’s children? One of the boys is completing his second year in the family business [Goldman Sachs]and the other will be a first-year investment banker this June.
I have no advice for them, but I do for Lloyd Blankfein. I would just tell her to make sure her kids do it for themselves. Let them learn to fall down so they can get up. Respect them enough to know they can do it, like my father. He was not a sharp person, or without love; the way he raised us was actually extremely respectful. Don’t write blank checks.
Now that you’re older, are there any benefits to being Warren Buffett’s son? Do you get to ride on a private jet every so often? Do you get free car insurance?
There are other benefits. Taking a private jet is sometimes definitely one of them. Something I don’t take lightly!
