Renowned investor and billionaire Chairman and CEO of Berkshire Hathaway Inc. Warren Buffett often discusses what he calls "the ovarian lottery" — the random chance of being born into a particular time, place and identity. The concept is not new; it echoes ideas discussed by economist Adam Smith in the 1700s.
During a lecture to business school students at the University of Florida in 1998, Buffett vividly portrayed the lottery, which he explained would be the "most important thing in life." He told students to imagine being presented with a barrel containing 5.8 billion balls, each representing a different life circumstance. The student would take one ball, and that single chance would determine their place of birth, ethnicity, wealth, gender and intellectual abilities. Buffett encouraged students to think of what kind of world they would design if faced with such uncertainty.
He said the world should provide enough balance for people to live well and provide future children and grandchildren with a better life, but it should also take into consideration the people who accidentally get the "wrong" ball.
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This perspective urges people to look at social questions with empathy and fairness, imagining that they could be anyone in the barrel. Such a mindset would lead people to design a system that provides ample goods and services for everyone to live well. People would strive for continuous progress so that future generations can enjoy an even better quality of life.
Buffett acknowledged his own fortune, having been born into a time and place where his skills align well with a market economy. He humorously contrasted his ability to allocate capital with the practical skills needed for survival on a desert island. But more than anything, he emphasized gratitude for his privileged circumstances.
Buffett, who has a net worth of $117.5 billion, said, "Big opportunities in life have to be seized. We don't do very many things, but when we get the chance to do something that's right and big, we've got to do it." Thousands of investors use Buffett’s investing strategies to help build a diversified portfolio in hopes of outperforming the market like Buffett has done for decades.
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Buffett also touched on the issue of race, acknowledging the structural advantages that being white conferred in the early 20th century. He stated, "We won it by being white. You know, no tribute to us, it just happened that way."
During the Great Depression, much of America was still segregated, and African-Americans faced unemployment rates two to three times higher than whites.
With some humor, Buffett imagines how being born in a different era, say 3 million years ago, would have led to a far less fortunate fate — perhaps being an animal's lunch because of limited physical abilities. He contrasted this with the present day, where he considers himself fortunate to have been born into a market economy that rewards his wired disposition.
Buffett told the college students, "I am the luckiest 1% of the world right now sitting in this room — the top 1% of the world."
This realization of his privileged position shapes his gratitude for various aspects of life, including his parents, experiences and the environment in which he grew up.
He values personal fulfillment over monetary gains, stating that he would decline an opportunity to make $100 million if it meant working with someone he didn't like. He compares this approach to not marrying for money, believing it is not a wise choice regardless of your financial status.
Buffett reflects on his own journey, acknowledging that he would make similar life choices again if given the opportunity to do it over, except for one specific decision — buying US Airways, a bet that would eventually cost Berkshire Hathaway more than $700 million 20 years later.
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