Warren Buffett Tried Convincing Bill Gates To Pay Nearly $400 Million For An Engagement Ring — The Marriage Ended In A Divorce With No Prenup

Warren Buffett, notorious for his cherry sodas and aversion to splurges, is the king of value investing. But when it came to his billionaire buddy Bill Gates and popping the question, Buffett tossed frugality out the window, according to "The Deals of Warren Buffett Volume 2: The Making of a Billionaire" by Glen Arnold.

In 1993, Gates, accompanied by his future wife Melinda, visited Omaha, Nebraska, to attend a Berkshire Hathaway Inc. shareholder’s conference. They were greeted by Buffett, who quickly whisked them away to Borsheims, a high-end jewelry store owned by his company, intent on helping them select a diamond engagement ring. 

During the shopping trip, Buffett challenged Gates to embrace a grand gesture of affluence. 

Don't Miss:

• Investing in real estate just got a whole lot simpler. This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
• Want To Grow Your Wealth Passively? Unlock Real Wealth with Cityfunds’ Exclusive 8% Yield Fund.

“I spent 6% of my net worth on an engagement ring back in 1951,” Buffett told Gates, suggesting that the Microsoft Corp. founder do the same. At the time, Gates’ net worth was estimated at $6.2 billion, which meant following Buffett's advice would set the ring’s price at $370 million. 

Despite the suggestion, Gates did not indulge in the recommendation. Instead, he chose a more understated approach, ultimately proposing to Melinda with a 1-carat diamond ring. Reflecting on the day's less-than-extravagant outcome, Buffett later said, “We didn’t have quite as big a day that Sunday as I had hoped.”

Trending:

• Elon Musk Is Bullish On Austin. Here’s How To Invest In The City’s Growth Before He Floods It With New Tech Workers.

The proposal led to a marriage in 1994, and the Gateses were together for 27 years before their separation. Their union was managed without a prenuptial agreement but through a separation agreement when they parted ways. Reports circulated that Melinda Gates received around $76 billion, though this was not officially confirmed.

If Gates had taken Buffett's advice, today’s equivalent of such a purchase would be around $800 million, accounting for inflation. With such a budget, Gates could have acquired some of the world's most famous diamonds, like the 59.6-carat Pink Star or the 14.62-carat Oppenheimer Blue.

While Gates may not have been keen on spending millions on an engagement ring, he did not hold back when it came to his residence. His Medina, Washington, estate, known as Xanadu 2.0 after the fictional home of Charles Foster Kane from “Citizen Kane,” represents a significant investment. Located in an affluent Seattle suburb, that also was home to Amazon.com Inc. Founder Jeff Bezos, Gates bought the land in 1988 for $2 million and spent $63 million building the expansive 66,000-square-foot mansion, now valued at around $130 million. The home is renowned for its high-tech features, a major contrast to Buffett, who still resides in the modest Omaha home he purchased in 1958 for $31,500.

Read Next:

• Dara Khosrowshahi-Backed Startup Lets You Become a Landlord with $100.
• Miami Is Expected To Take New York's Place As The US Financial Capital. Invest In It With $500 Before That Happens.