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- Warren Buffett bought his first private jet in 1986 and upgraded to a much pricier one in 1989.
- Buffett and his business partner, Charlie Munger, clashed over the extravagant purchases.
- The investor changed his plane’s nickname from “The Indefensible” to “The Indispensable.”
- Warren Buffett may rank among the wealthiest people on the planet, but he’s known for his frugal habits and modest lifestyle. The billionaire investor and Berkshire Hathaway CEO initially balked at the idea of owning a private jet, but ultimately embraced the luxury and convenience.
- Warren Buffett nicknamed his private jet ‘The Indefensible’ – then renamed it ‘The Indispensable’ after realizing its value.
Warren Buffett may rank among the wealthiest people on the planet, but he’s known for his frugal habits and modest lifestyle. The billionaire investor and Berkshire Hathaway CEO initially balked at the idea of owning a private jet, but ultimately embraced the luxury and convenience.
A triumph over thriftiness
Buffett was riding high in 1986 after growing Berkshire’s net worth by over $600 million or 48% the previous year. He called up Walter Scott Jr., a fellow executive and longtime friend, to ask how he could possibly justify buying a plane for himself.
“Warren, you don’t justify it, you rationalize it,” Scott replied. Buffett followed his advice and “sheepishly” spent $850,000 on a used Falcon 20 jet, author Alice Schroeder wrote in “The Snowball: Warren Buffett and the Business of Life.” Buffett wrestled with the ostentatious purchase because it clashed with his upbringing and self-image. He was so miserly that when The Washington Post’s publisher and his close friend, Katharine Graham, asked him for a dime to make a phone call at the airport once, he pulled out a quarter and started rushing off to get change. She eventually convinced him to let her squander 15 cents.
“For Buffett, it was like leaping in one bound over Mount Kilimanjaro to go from justifying 25 cents for a phone call to rationalizing two pilots and an entire airplane to carry him around like a pharaoh on a litter,” Schroeder said in her biography of the investor.
Yet Buffett swiftly embraced the high life. He sold the first jet and splurged $6.7 million on a different used jet in 1989, he admitted in his yearly letter to Berkshire shareholders. He joked they might “understandably panic” if the cost of upgrading the plane kept multiplying like bacteria, as it wouldn’t be long until Berkshire had its entire net worth wrapped up in a single aircraft.
“Charlie doesn’t like it when I equate the jet with bacteria; he feels it’s degrading to the bacteria,” Buffett quipped, referring to his business partner, Charlie Munger. He also revealed the nickname they had chosen for the uncharacteristic indulgence: “The Indefensible.”
Buffett poked fun at his hypocrisy in his 1992 letter, framing his purchase as a display of “uncharacteristic flexibility. For years, I argued passionately against corporate jets,” he said. “But finally my dogma was run over by my karma.”
Planes and buses
Buffett may be a fan of luxury travel, but Munger considers it frivolous. “The back of the plane arrives at the same time as the front of the plane, invariably,” Berkshire’s vice-chairman said at the 1994 shareholder meeting.
“His idea of traveling in style is an air-conditioned bus, a luxury he steps up to only when bargain fares are in effect,” Buffett teased Munger in his 1989 letter. The investor noted in his 1990 letter that if he died the next day, Berkshire’s earnings would jump by $1 million annually as Munger would immediately sell the company plane.
Moreover, when Buffett was asked at the 1994 meeting if a new cross-country service would spur him to cut back on private flights, he jokingly accused Munger of hiring the audience member to shame him. “This is a question planted by Charlie,” he said, before underscoring how much he enjoys the plane.
“I take it to the drugstore at the moment,” he said. “It’s just a question of when I start sleeping in it at the hangar.” Buffett ultimately overcame his qualms and championed the plane’s value, rebranding it as “The Indispensable.”
FAQs
Warren Buffett, known for his frugality and simple lifestyle, named his private jet 'The Indefensible' as a reflection of his personal philosophy. Despite being a billionaire, Buffett has often criticized excessive spending and luxury.
What jet does Warren Buffett own? ›
Buffett followed his advice and “sheepishly” spent $850,000 on a used Falcon 20 jet, author Alice Schroeder wrote in “The Snowball: Warren Buffett and the Business of Life.” Buffett wrestled with the ostentatious purchase because it clashed with his upbringing and self-image.
What is the world's largest private jet company? ›
NetJets operates the largest, most diverse private aircraft fleet in the world and offers a full range of personalized private aviation solutions to meet—and exceed—the high standards of the world's most discerning travelers.
What is netjet aviation? ›
NetJets Inc. is an American company that sells fractional ownership shares in private business jets. NetJets. IATA. ICAO.
What is buffet plane? ›
Page 9. II. INTRODUCTION. Buffet is a dynamic behavior of aircraft flying at a high angle of attack. It occurs in the tran- sonic region where the aircraft has substantial forward speed and the angle of attack becomes large due to certain maneuvers initiated by the pilot.
Does Jimmy Buffett own a private jet? ›
Buffett currently has four planes registered as "Strange Bird, Inc.", including a 1954 Grumman HU-16, 1941 Boeing E75 Stearman, 1998 Cessna Caravan 208 and a 1992 Dassault-Breguet Mystere Falcon 900. John Travolta's Boeing 707.
What jet does Bill Gates own? ›
Bombardier Challenger 350
Bill Gates owns four private jets as well as a Cessna 208 Seaplane and a Eurocopter EC 135 helicopter. His private jet collection is made up of two Gulfstream G650ER's and two Bombardier Challenger 350s.
What jet does Jeff Bezos own? ›
Jeff Bezos' 3 private jets are worth $140 million and include 2 Gulfstream G650ERs alongside a hangar in Seattle. Jeff Bezos owns three private jets, worth around $140 million in total. They include two Gulfstream G650ERs and a Pilatus PC-24.
Who owns the richest private jet? ›
The Airbus A380 owned by Saudi Prince Alwaleed bin Talal takes the crown as the most expensive private jet in existence. With an estimated value surpassing $500 million, this flying palace showcases unrivaled luxury and customization, solidifying its status as a true marvel among aircraft.
Does Trump own a plane? ›
The Trump Organization's Boeing 757, nicknamed Trump Force One after the U.S. presidential plane, Air Force One, is an aircraft owned and operated by Donald Trump. The nickname gained use during Trump's presidential campaign of 2016. Trump's Boeing 727 aircraft, the predecessor of Trump Force One.
His jet, a Gulfstream G650ER, has been on 14 different flights since the, JetSpy data shows.
Does Mark Zuckerberg own a private jet? ›
In conclusion, Mark Zuckerberg's use of a private jet, specifically the Gulfstream G650, highlights the importance of efficiency, comfort, and security in executive travel.
How much is 25 hours on a netjet? ›
With a NetJets card, you get 25, 50, or 100 hour blocks of flight time - depending on which card you choose. Prices vary depending on factors such as location and aircraft size, but these cards generally start around $100,000 for a 25-hour block.
Does Buffett own NetJets? ›
Since then, landmark events such as the launch of shared aircraft ownership in 1986 and the acquisition of the company by Warren Buffett's Berkshire Hathaway in 1998, have seen NetJets become a global force to be reckoned with.
Do you tip Netjet pilots? ›
Many US customers don't tip pilots, but offering something in the $50-100 range is fairly common. Corporate pilots are typically paid well for their flying experience and professionalism – but some do go above and beyond for clients.
How much did Berkshire pay for pilot Flying J? ›
In separate transactions during 2017 and 2023, Berkshire Hathaway spent $11 billion to buy out the majority stake in the company, reported CNBC.
Does Berkshire still own NetJets? ›
While Warren Buffett has long said his multiple airline investments were a mistake, the owner of NetJets and Executive Jet Management this week saw his Berkshire Hathaway become the first non-tech company to gain a trillion-dollar market cap.
Who owns Netjet? ›
Since then, landmark events such as the launch of shared aircraft ownership in 1986 and the acquisition of the company by Warren Buffett's Berkshire Hathaway in 1998, have seen NetJets become a global force to be reckoned with.
What billionaire drives a Cadillac? ›
Despite being the sixth-richest person globally, Warren Buffett continues to drive a 2014 Cadillac XTS he purchased with hail damage.
