Warren Buffett Buys His McDonald’s Based on the Stock Market — Should You?

Warren Buffett will step down from running Berkshire Hathaway at the end of this year, but he remains one of the wealthiest and most influential investors in history, with a net worth of around $158 billion and millions of dedicated followers.

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At 94 years old, Buffett is a shining example of someone who figured it out at a young age and never strayed from his fundamental financial beliefs. But he is also renowned for being extremely thrifty; he lives in the same Omaha house he purchased for $31,500 in 1958 and eats a cheap McDonald’s breakfast every day.

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Buffett’s Breakfast Routine

Regarding the latter, Buffett explained in the 2017 HBO documentary “Becoming Warren Buffett” that his breakfast routine at the “Golden Arches” is influenced by the daily ups and downs of the stock market.

“When I’m not feeling quite so prosperous, I might go with the $2.61, which is two sausage patties, and then I put them together and pour myself a Coke,” he said. “$3.17 is a bacon, egg and cheese biscuit, but the market’s down this morning, so I’ll pass up the $3.17 and go with the $2.95.”

In his financial dealings and his everyday life, Buffett is a man of habit who chooses to buy his breakfast each morning, despite his enormous wealth and ownership of a rare McDonald’s “Gold Card” that grants him free food for life in Omaha. “There’s just a few of them,” Buffett said in a CNBC interview. “Bill Gates has one. His is good throughout the world, I guess. Mine is only good in Omaha, but I never leave Omaha so mine is just as good as his.”

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Should the Stock Market Influence Your Everyday Spending?

Generally, you should never base your daily spending on the short-term ups and downs of the stock market. Stock market prices and food prices are not directly correlated and are influenced by a separate set of factors. Your daily expenses should be covered by a stable income and a smart budget rather than relying on unpredictable, speculative investment gains.

Buffett knows this, of course. Although he meticulously studies companies he’s interested in buying and is a skillful value investor, Buffett’s net worth has grown into the billions because he sticks with stocks through the bad news days and turbulent short-term slides, allowing compound interest to do its thing over time.

When it comes to being a McDonald’s customer, Buffett is as serious and loyal as one could be. However, his McDonald’s breakfast routine is largely symbolic, in line with his sensible spending habits and simple pleasures.

When It Might Make Sense To Adjust Spending

Stocks are great investments for long-term growth, so you should always avoid frequent or impulsive cash-outs that may result in lost compounding profits, taxes and fees. Tweaking a portfolio from time to time is fine, but long-term investors should leave their investments undisturbed and take a look at them every couple of months. Additionally, lifestyle inflation can occur when you spend more when your portfolio is doing well.

However, the stock market has an indirect impact on daily spending for many Americans by influencing people’s views of their wealth and fueling economic confidence and the propensity to spend. Most investors make a big purchase or optimistically plan for retirement during a bull market, when a strong economy makes them feel wealthier and more assured.

This isn’t a bad thing; being a keen observer can help you avoid making uncomfortable purchases and keep you in the broader financial news loop. But unless you follow a structured retirement plan (like the 4% rule) or rely heavily on investments for income, adjusting your daily spending on stock market trends can be counterproductive to your overall wealth growth goals.

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