The music industry is in mourning following the loss of iconic American singer-songwriter Jimmy Buffett, who passed away at the age of 76 on September 1, surrounded by family, friends, and his beloved dogs.
Known for turning his love for beach life into a billion-dollar "Margaritaville" empire, Buffett was not just a musical legend but also an astute investor. Among those who have long admired his investment acumen is none other than Warren Buffett, with whom he shares a last name.
What Happened: Over the years, many have turned to Berkshire Hathaway Inc (NYSE: BRK-A)(NYSE: BRK-B) as a long-term investment, and Jimmy Buffett was no exception. The artist behind hit songs like "Come Monday," "Son of a Son of a Sailor," "Why Don't We Get Drunk," "It's 5 O'Clock Somewhere," and, of course, "Margaritaville," leaves behind a legacy that spans both music and business.
In a 2022 interview, Jimmy Buffett revealed his adoration of legendary investor Warren Buffett and shared that he has owned shares of Berkshire Hathaway for over 26 years.
“Never sold anything,” Jimmy Buffett told CNBC’s Becky Quick when asked if he has been a holder all these years.
The musician said he has been friends with Berkshire Chairman Warren Buffett for years and came to know him when tracing his family lineage.
Jimmy Buffett told Quick that he thinks the two could be related, tracing back “somewhere in a French village.” Although, a 23andMe DNA test showed that the two Buffetts are not related.
Musician Buffett also designed a pontoon boat made by Forest River, a subsidiary of Berkshire. The pontoon boat was shown off and made available for sale for the first time at the shareholder event.
Warren Buffett referred to the musician as “Cousin” Jimmy Buffett in a February shareholder letter announcing the new boat.
“Your bargain-hunting chairman will be buying a boat for his family’s use,” Warren Buffett said at the time.
Jimmy Buffett also shared a bit of his success story in building out a business brand around the “Margaritaville song.”
He confirmed the song was written in less than seven minutes. “Played on stage for people who had never heard it, got into the setlist and became a favorite of fans,” Jimmy Buffett said.
Rather than the song being a big radio hit first, the musician said the classic tune was built out of being good performers.
Related Link: Jimmy Buffett's Business Success Once Earned Him Warren Buffett's Admiration: 'Tell Jimmy To Keep Me In His Will'
Why It’s Important: Berkshire Hathaway doesn’t pay a dividend, instead choosing to invest in companies through buyouts or large equity stakes. Warren Buffett and Berkshire Hathaway favor a long-term approach, betting on companies that offer value and predictable financials.
The companies owned by Berkshire Hathaway include Geico, Fruit of the Loom, Duracell and Dairy Queen.
Berkshire Hathaway also owns large stakes in Apple Inc AAPL, Bank of America Corp BAC, Coca-Cola Inc KO and American Express Inc AXP.
From 1956 to 2021, Berkshire Hathaway produced an average annual return of 20.1% versus 10.3% for the S&P 500.
Investors who invested in Berkshire Hathaway or followed the legendary investor into investments like Apple have enjoyed strong returns.
Some elements of this story were previously reported by Benzinga and it has been updated.
Photo: Created with images from sjfst17 and Fortune Live Media on flickr
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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