Yahoo Finance Warren Buffett Was Almost Kidnapped And Held For $100,000 Ransom In The 1980s — Since Then, He Spends 3x More On Security Than His Salary
Warren Buffett, the iconic investor and CEO of Berkshire Hathaway Inc., faced a harrowing incident in the late 1980s that significantly shifted his perspective on personal security. The episode, detailed by Alice Schroeder in the biography “The Snowball: Warren Buffett and the Business of Life,” involved a foiled kidnap attempt that highlighted the vulnerabilities associated with wealth and fame.
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By the mid-1980s, Buffett’s astute investments and business acumen had propelled him into the ranks of the ultra-wealthy, earning him a spot on Forbes’ list of the 400 wealthiest Americans in 1985. This recognition came with increased risk.
In 1987, two people, one brandishing a firearm, attempted to abduct Buffett from his office in Omaha, Nebraska. They planned to demand a ransom of $100,000 for his release, a sum that today would equate to approximately $273,000.
Security and law enforcement prevented the kidnapping, and Buffett was left unscathed but profoundly aware of the risks his wealth and status attracted. Instead of hiring a personal bodyguard, which would impinge on his privacy, Buffett enhanced his security in less obtrusive ways. He installed a surveillance camera and a hefty 300-pound metal door at his office, demonstrating a measured approach to his safety.
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Known for his careful spending and maintaining an annual salary of $100,000 for more than four decades, Buffett has prioritized significant investments in his and his family’s safety. His measures include advanced security systems for his homes, personal security guards, a car with a defensive driver and cybersecurity measures. According to Berkshire Hathaway’s filings, the average annual expenditure for Buffett's security has been $339,000 since 2008.
Berkshire Hathaway’s recent disclosures reveal a reduction in these expenses. The company reported a 19% decrease in Buffett's personal and home security costs, from a peak of $387,881 in 2016 to $313,595 in 2023.
While these figures might seem substantial, they represent a fraction of the amounts other companies spend on their CEOs’ safety. For example, Meta Platforms Inc. significantly raised its security allocation for CEO Mark Zuckerberg from $10 million to $14 million, responding to identified threats. Alphabet Inc. CEO Sundar Pichai, who receives $226 million in annual compensation, received personal security perks totaling $5.9 million underscoring the importance of executive safety in the modern corporate world.
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This article Warren Buffett Was Almost Kidnapped And Held For $100,000 Ransom In The 1980s — Since Then, He Spends 3x More On Security Than His Salary originally appeared on Benzinga.com
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