At the age of 26, Buffett had already accumulated a “retirement fund” of around $174,000 ($1.54 million in 2018 dollars) having been earning and investing money since he was a young lad, particularly during his years working for Ben Graham's hedge fund in NYC. He bought his home in Omaha for $31,000 cash and his living expenses were modest. It was at this point he decided to strike out on his own and launch his investment business.
He did not need to tap into this retirement fund to launch his investment partnerships, viewing that capital as the key enabler of him running his own business. During this period, Mr. Buffett lived off income and gains coming out of this personal ...