Yahoo Finance 'He should be everybody's hero': Warren Buffett and Bill Gates looked up to this billionaire — 3 big lessons we can learn from Charles Feeney
He was the billionaire who gave it all away.
Charles “Chuck” Feeney made much of his riches selling booze, cigarettes and perfume. The co-founder of the Duty Free Shoppers Group died on Oct. 9 at the age of 92, but fulfilled his pledge to donate the bulk of his $8 billion fortune long before his death.
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“Chuck Feeney is a remarkable role model, and the ultimate example of giving while living,” Bill Gates told Forbes back in 2012.
Berkshire Hathaway CEO Warren Buffett presented a Forbes 400 Lifetime Achievement Award to Feeney in 2014, calling him “my hero and Bill Gates’s hero. He should be everybody’s hero.”
Even if you aren’t wealthy, a lot can be learned from the way Feeney lived and enjoyed his life, from his philanthropy to his frugal lifestyle. Here are some of the lessons that are part of his legacy.
Diversification
While building his massive fortune, Feeney didn’t just focus on his global network of duty-free airport stores — he was a prolific investor as well.
By the early 1980s, he was profiting from hotels, property and retail, and he later invested in some tech start-ups. It wasn’t until 1996 that he sold his stake in Duty Free Shoppers for a tidy $1.63 billion that went to his foundation, Atlantic Philanthropies, a deal that multiplied in value by investment returns later, according to the Wall Street Journal.
Feeney followed the golden rule — don’t put all your eggs in one basket — and grew his wealth by diversifying his investments.
Similarly, while you’re buying stocks, make sure you’re not sticking to one company or sector. This will provide some shelter from any unexpected dips in the market. Do your research and build a balanced portfolio of companies or ETFs.
Read more: 'It's not taxed at all': Warren Buffett shares the 'best investment' you can make when battling inflation
Frugality
Feeney had lived a life of luxury like many of his billionaire cohorts until his priorities changed.
He once spent his time cruising on yachts and private jets — but decided in his later years to cut back and focus on his philanthropic efforts.
He went from purchasing luxurious multimillion-dollar homes in places such as London and the French Riviera to renting a two-bedroom San Francisco apartment with his wife.
For Feeney, value was more important than showing off his wealth. He flew coach because he wasn’t getting anywhere any faster by opting for a first-class ticket. He wore a $15 watch since it told the same time as a high-priced timepiece. He also used plastic bags in place of a briefcase to carry documents.
“I just reached the conclusion with myself that money, buying boats and all the trimmings didn’t appeal to me,” he was quoted saying in a 2007 biography about his life, “The Billionaire Who Wasn't.”
Most importantly, Feeney was intentional with his spending, leaving enough funds behind for his investments and donations.
This is a crucial tenet for managing your money (even if you don’t have billions in your bank account). Consider creating a budget and monitoring your monthly expenses so that you’re leaving some of your income behind for your financial goals, too, such as your emergency savings or nest egg.
Charitable giving
Despite his attempts to conceal his philanthropic efforts for years, Feeney is perhaps best known for his charitable giving.
Feeney donated to a range of causes, including AIDS relief in South Africa, Operation Smile’s free surgeries for children with cleft lips and palates and earthquake relief in Haiti.
"People used to ask me how I got my jollies, and I guess I'm happy when what I'm doing is helping people and unhappy when what I'm doing isn't helping people,” Feeney told Forbes.
There are potential financial benefits to charitable giving as well come tax time, as you may qualify for a tidy deduction on your next return.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
