With a net worth of $38bn, investor Warren Buffett is one of the wealthiest men on the planet. In 1970, he discovered the following letter in a safe deposit box along with the $1,000 cash mentioned therein. 30 years earlier it had been sent by his grandfather, Ernest — a grocery store owner — to Warren’s uncle, Fred, and Fred’s wife. Similar letters had also been sent to Ernest’s other children.
Earlier this year, Warren Buffett said of his grandfather’s valuable financial advice:
"At Berkshire, we have taken his $1,000 solution a bit further and have pledged that we will hold at least $10bn of cash, excluding that held at our regulated utility and railroad businesses. Because of that commitment, we customarily keep at least $20bn on hand so that we can both withstand unprecedented insurance losses (our largest to date having been about $3 billion from Katrina,the insurance industry’s most expensive catastrophe) and quickly seize acquisition or investment opportunities.”