How does Warren Buffett live on $100,000 salary without ever selling a single share of Berkshire stock? How does he afford to travel by corporate jet?
From 1956 to 1969 Warren Buffett managed the Buffett partnership which gave him 25% of the profits after a 6% guaranteed return to his partners. With that arrangement Warren was able to generate $25 million in net worth, most of which was invested in Berkshire Hathaway. However Mr. Buffett kept 1% of his money outside of Berkshire. That portfolio estimated at $400 million generates over $40 million per year in annual income. Which is how he and his family affords to fly as many as 300 hours per year on wholly owned subsidiary NetJets planes. As a side note, Warren personally pays for the use of the jet.
