How Much Would You Spend on Lunch? Is $19 million the answer?

 by Tareef Ahmed

Warren Buffett

When going out for a meal, many people have a rough ballpark figure of how much they’re planning to spend.The world record for the most expensive lunch has just been broken with an anonymous (and presumed wealthy) individual bidding $19 million for a lunch with the Oracle of Omaha - Warren Buffett.

Warren Buffett, for those that don’t know him, is currently (as of the 19th June 2020) the 7th richest person in the world according to Forbes with a net worth of $93.4 billion. Buffett is regarded to be the greatest investor of all time and is the chair and CEO of Berkshire Hathaway which is currently the 7th largest company by market capitalization. In the investing world, Buffett is looked up to and many follow his advice and pay large sums of money in order to talk to him - Buffett realises this and has hosted 21 charity lunches with the money raised being donated to a non-profit called Glide which aims to help the poor and alleviate poverty in the Bay Area of San Francisco.

The auctions had begun in the year 2000, and have raised over $50 million in total since. But what are these bidders actually bidding for? The answer is, a one-hour “power lunch” at Smith & Wollensky in New York, which is said to be one of Mr Buffett’s favourite restaurants. Buffett will talk about anything during this meal, except for what he will invest in next but the value that could be received from this hour talk with the Oracle of Omaha (nicknamed this due to being based in Omaha, Nebraska) must surpass that of the $19 million to be a worthwhile investment. 

This is said to be the last charity auction that Buffett will hold (aged 91) so has been seen as a grand-finale, potentially being the reason why this auction raised more than four times the amount of the previous bid. Many of the winners choose to stay anonymous, but some come out publicly. A notable example would be Ted Weschler who had won the 2010 and 2011 auctions paying a combined figure of $5.25 million. However, following these lunches, Weschler was hired by Buffett as a portfolio manager for Berkshire Hathaway, showing that these two meetings with Buffett may have changed his life completely, with the cost only being $5.25 million yet he now manages over $13 billion of the equity portfolio and $8 billion in pension funds.

This shows the power of networking, and how connecting with different individuals can change your life, either directly or through the knowledge and experience you receive from meeting them. The question is though, would YOU spend millions on a 1 hour lunch with one of the world’s richest men?