When Warren Buffett Was Only 14, He Already Had Business Expenses. Here's What His First Tax Return Shows

Warren Buffett, one of the most successful investors of all time, was already on the path to financial success at the young age of 14. While most teenagers are busy with school and hobbies, young Warren was busy making money – and filing taxes!

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Back in 1944, Buffett had a paper route in his Washington, D.C. neighborhood, delivering morning and afternoon newspapers. According to Buffett’s 2017 PBS NewsHour interview, six senators and one justice of the Supreme Court were along his path. He carried the morning and afternoon editions of the Washington Post and the now-defunct Washington Times-Herald.

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He made $592.50 that year, which was more than enough to require him to file a federal tax return, as the threshold was $500 at the time. To put it into perspective, that's about $10,597 in today's money. He also had to pay $7 in taxes or about $125 in today’s currency.

But what's even more impressive than a teenager filing taxes is that Buffett already had business expenses. He meticulously noted them in his tax return, just like a seasoned entrepreneur would. He spent $10 on watch repairs and $35 on miscellaneous bicycle costs – essential expenses to keep his paper route running smoothly. That's $805 in today's dollars!

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Buffett's early start in the business world actually began even earlier. At 11, he bought his first stock: three shares of Cities Service Preferred, a natural gas company. He bought them at $38 each, but the price quickly dropped to $27. When the stock hit $40, he sold for a small profit. Later, the shares soared to $200 each – a valuable lesson in patience that stuck with him throughout his life.

Due to Warren Buffett’s financial savvy, Berkshire Hathaway has become a member of the exclusive trillion-dollar club. On Aug. 28, Berkshire Hathaway became the first non-tech U.S. company to attain a $1 trillion market value, cementing Buffett’s place among the greatest investors of all time. 

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Buffett continues to live a modest lifestyle in the same Omaha, Nebraska, home he paid $31,500 for in 1958 despite his enormous riches. Adjusted for inflation, that would be over $343,000 today. The 6,570-square-foot home, located just a five-minute drive from Berkshire Hathaway's headquarters, is valued at around $1.4 million.

Who would have thought that a young paperboy with a talent for investing and saving would grow up to be among the world’s richest people? It only shows how wise choices and excellent habits can mold your entire destiny, even when made at an early age.

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