Charles Feeney’s life offers profound lessons on money management that anyone can apply.
Charles “Chuck” Feeney made billions selling cigars, perfume and wine. On October 9, the co-founder of the duty-free store chain Duty Free Shoppers passed away at the age of 92. His long-standing promise came true: the billionaire’s entire $8 billion fortune famous for his frugal lifestyle will be donated to charity.
In 2014, legendary investor Warren Buffett called Chuck Feeney “my hero and Bill Gates”. “He should be everyone’s hero,” he said.
Feeney’s life offers profound lessons on money management that anyone can apply.
Diversification
To build a multi-billion dollar fortune, Feeney did not only focus on the duty-free store system appearing at airports around the world. He is also an excellent investor.
In the early 1980s, Feeney benefited greatly from the hotel, real estate and retail businesses. After that, he also invested in a number of technology startups.
In 1996, he sold a large number of shares in Duty Free Shoppers, earning $1.63 billion to donate to the Atlantic Philanthropies charity fund.
Feeney followed the golden rule of investing: don’t put all your eggs in one basket and multiply your assets many times over by diversifying your portfolio.
Live frugally
Feeney also bought several luxury homes worth millions of dollars in London and the French Riviera. But then he and his wife sold everything and only rented a 2-bedroom apartment in San Francisco.
Like other billionaires, he also used yachts and jets, but in his later years decided to focus on philanthropic efforts.
For Feeney, value is much more important than showing off assets. He always flies with cheap tickets because he believes you won’t be able to travel faster if you choose business class. He wears a watch that costs $15 and uses a plastic strap.
Feeney once shared that he realized that money or flashy luxury items were no longer attractive. Most importantly, he clearly knows what his spending is for and saves enough money to invest and do charity.
Giving is forever
Once dubbed “the James Bond of philanthropy” by Forbes, Feeney is most famous for his commitment to giving away all his assets, despite his efforts to hide it for many years.
Feeney has the right to contribute money to many activities, from the campaign against AIDS in South Africa to free cleft palate surgery for many children around the world or relief for earthquake victims in Haiti.
“I feel happy when I help people, on the contrary I feel unhappy when what I am doing cannot help anyone,” he said.
