Warren Buffett remains one of the wealthiest people in the world, with a net worth over around $150 billion! While it’s almost unfathomable to imagine having that kind of wealth, you might be thinking that just owning a small percentage of Buffett’s investments could set you free financially.
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So let’s run through a fun exercise: What amount of money could you pull in every month if you owned even just 1% of Buffett’s total wealth? GOBankingRates break down the numbers and even talk about a few things you’d be able to afford with those massive monthly paychecks.
What Is 1% of Warren Buffett’s Wealth?
With a net worth of $150 billion, just owning 1% of Buffett’s massive net worth is $1.5 billion. And while that might seem small in comparison to the Bezos’ and Musk’s of the world, just imagine this — with $1.5 billion, you’d still be among the 3,000 billionaires in the world!
A $1.5 billion net worth puts you in elite company, including recording artist Rhianna, Taylor Swift, and even NBA legend Magic Johnson!
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What Could You Earn per Month With $1.5 Billion?
If you inherited 1% of Warren Buffett’s wealth and suddenly had $1.5 billion, you’d easily be set for life. But how much you could earn per month depends on what you choose to do with the money.
Here’s the possible monthly income you could earn based on a few different ways to invest $1.5 billion:
- High-yield savings account (about 3.5% APY): Parking your newfound cash in a high-yield savings account could yield around 3.5% APY per year. While you’d need to split it up over several banks to stay protected by the FDIC, you’d be earning a solid $4,375,000 per month.
- U.S. Treasury bonds: U.S. Treasury Bonds are one of the safest investments in the world. Investing your month in 20-year Treasuries would yield a current rate of 4.875%. U.S. Treasury bonds pay out every six months, but if you break it down monthly, you’d be earning $6,093,750 per month.
- Balanced portfolio (60/40): Investing in a balanced portfolio of stocks and bonds can help you grow your $15 billion and collect a handsome paycheck at the same time. A popular retirement portfolio is the 60/40 — where you’d invest 60% of your money into stocks, and 40% into bonds. Vanguard reports that the 60/40 portfolio has averaged around 8.8% a year historically. This means you’d be earning around $11,000,000 per month if you achieved average returns.
- Real estate: Real estate has been a favorite investment of the wealthy for years. But deploying $15 billion into the market can be daunting, so you might just want to invest in REITs instead. These investments can be bought as ETFs and own commercial real estate. For example; Vanguards Real Estate ETF (VNQ) has averaged around 7.5% annual returns since it was launched in 2004. Putting $15 billion in VNQ could earn the equivalent of around $9,375,000 per month.
What Could You Buy With 1% of Buffett’s Wealth?
Investing $1.5 billion could net you between $4 and $11 million per month, which is an incredible income. But what exactly could you buy with this income?
Here are a few fun ideas to consider if you end up with a slice of Buffett’s wealth in your bank account:
- Ferraris on repeat: Buy 12-31 Ferrari 296 GTBs each month at about $350k apiece.
- Superyacht season: Charter a 300-foot megayacht for a peak month, typically $4M to $10M including crew and fuel.
- Twin long-range jets: Lease and operate two Gulfstreamjets all-in at roughly $6M to $9M per month.
- An MLB roster’s salaries: Cover a mid-market MLB team’s annual payroll, about $8M to $10M per month in season.
- Erase medical debt at scale: At ~1 cent on the dollar (when negotiate a settlement), $4M to $11M could clear $400M to $1.1B in medical debt each month.
- Full-ride scholarships: Fund 1,600 to 4,400 students at $30k per year each
- Greenlight a movie: Finance a $50M to $60M film, spending $8M to $10M per month during a 6-to-7 month production window.
But the real question is — what would YOU do with an extra $4 million to $10 million per month?
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This article originally appeared on GOBankingRates.com: How Much Monthly Income Could You Get from 1% of Warren Buffett’s Wealth?
