Warren Buffet is an American business magnate, investor, and philanthropist. He is also considered the most successful investor of the 20th century and the third wealthiest person in the world as of 2011. He has an estimated net worth of $47 billion.

Yet with all his billions, one often wonders how an assuming and modest gentleman should even be considered a billionaire. Billionaires are supposed to live lavishly and extravagantly, and Buffet is the antithesis to this stereotype

The Berkshire Hathaway CEO still chooses to live in his Omaha stucco residence, on the corner of Farnham and S 55th Street. He was 29 years old when he purchased the house in 1958 for $31,500, which is valued today at around $700,000. In his typically cautious and pragmatic self, Buffet thinks that the estimated value is wrong, and thinks that it's worth only $500,000 (Zillow agrees). He maintains, however, that it was one of the best investments he ever made in his life

"For the $31,500 I paid for our house, my family and I gained 52 years of terrific memories with more to come."

He also said in one of his interviews that:

"I have every possession I want. I have a lot of friends who have a lot more possessions. But in some cases, I feel the possessions possess them, rather than the other way around.”

Just as simplicity has been Buffet’s mantra all his life, so is simplicity the defining characteristic of his home. The 6,570-square-feet house has five bedrooms, and sits on a corner property in central Omaha. The original 1921 structure has some additions to it, and has a few thousand square feet short of being a mansion (usually, houses are considered mansions if they are about 10,000 square feet)

Buffet also once owned a 3,100-square-foot vacation house in Laguna Beach, California until 2005, which was then sold for $5.45 million in 2005

The house was built in 1955, and rests on the edge of the Pacific Coast Highway. It has four bedrooms and four bathrooms, with high ceilings (living room) and an L-shaped brick fireplace that gives a sense of mid-century flair. Yet even though its price tag is relatively quite expensive, one could still marvel at how modest it is compared to the lavish vacation homes of other billionaires

Despite owning only one home, Buffet is actually no stranger to investing in houses. His company, Berkshire Hathaway Inc., is an affiliate of the Minneapolis-based HomeServices of America Inc., the second biggest home ownership service provider in the United States

Homeservices of America offers integrated real estate services, such as home warranties, closing services, brokerage services, homeownership services, property and casualty insurance, and mortage originations. Some of its 20 regional names include: Iowa Realty, Prudential First Realty, Realty South, Prudential California Realty, Esslinger Wooten Maxwell Realtors, Koenig & Strey, Edina Realty, and many more

Buffet also owns Clayton Homes, the biggest company in the manufactured housing industry. Clayton Homes is the creator of the environmentally-friendly i-house.