Warren Buffet Might Tell You to Go to Purdue

I have a crush on Warren Buffet.

Disclaimer: not romantically. No offense. But rather because he’s an extraordinary human being. And because he knows money.

If, by chance, you live alone in a dark hayloft outside East Jesus, Nowhere, and don’t know who he is, Warren is a brilliant, beloved and insanely wealthy investor and philanthropist. He has, in his nearly 70 year career, made his trademark focus on “value” a widely trafficked and heralded approach to equity investing - one that prioritizes strong fundamentals and long-term thinking. It has netted him and his company - Berkshire Hathaway - billions of shekels. And rather admirably: he’s got a heart the size of Nebraska itself.

You may think it strange, but I often find myself emulating and channeling Warren in my life and work. I talk about value a lot - what’s “under the hood” of colleges, and how that connects with the goals, instincts and desires of students. Fit and value, indeed, go hand in hand.

But Warren is also a devotee of the concept and power of compound interest. I’m not going to explain it, because you have access to the internet. But you should learn about it before you decide where to go to college.

Dance break disclosure: I am not a certified financial planner or wealth manager. But we can still do a simplified and hypothetical exercise, just for fun.

You are currently a high school junior. You are an only child. Your parents have earned well, saved religiously, and invested shrewdly since before you were born. Thus, you do not qualify for need-based financial aid. Sidebar: if this is you, let’s acknowledge that you are supremely privileged and quite lucky. You should be humbled, and beyond grateful. You should mow your parents' lawn for free for the rest of their lives.

You love Cornell. You also love Purdue. Both are fabulous fits with much to offer you in every conceivable way, and you would be happy to attend either.

Ultimately, you apply to and are admitted to both. Great work.

Now, for the cold, hard truth:

Here is the projected, rough chop cost of your four years at Cornell (Arts & Sciences): approximately $387,000.

Here is the projected, rough chop cost of your four years at Purdue (Out of State): approximately $190,000.

Here is the difference: $197,000.

Enter the stylish queen with the compound interest calculator.

If you took that $197,000 and invested it in my favorite, dowager-approved mutual fund (Fidelity Puritan) today and left it untouched for the next 14 years, it could grow to around $675,000 by your 30th birthday. That future sum will have the buying power of about $456,000 today.

Pause, and say this number out loud: $456,000.

That could help you start your dream company. Or help you walk off a job that is giving you grief. Or you could stay home with your first child. Or buy a condo - in cash - in many fabulous parts of our country.

You could hire Cardi B to perform at your 30th birthday party - the bass line from Money shaking the floor as $20 notes and gold confetti rain from the ceiling.

You could - a la Warren himself - give a sizable chunk of it away to people and organizations doing good in the world.

Hell: you could do all of these things and then some.

Of course your parents could reclaim that money - and retire to Boca five years early. A well earned and just reward for supporting and loving you since birth.

The rub is that I can’t assign value in and to other people's lives - I can merely encourage them to consider it for themselves and their families. And no judgment: if Cornell is worth that much more to you, go for it. In the end, it’s deeply subjective: we like what we like, we want what we want, we need what we need. We all have different viewpoints and priorities and paths to follow. And some would posit that fundamentally: money is meant to be spent, and investing in kids is a good way to do it.

And please do note: even if you do end up falling into the expansive category of people who will rightfully qualify for some need-based financial aid, you may very well still have to make a similar decision about what it’s all worth - just with differently scaled numbers.

And when that moment comes, be sure to keep value - and a smiling, 93-year-old Midwestern mensch - at the center of that conversation. Think about it longitudinally; Warren himself proves that life is both long and fabulous. Just don’t forget to compound the interest along the way.

To close, I’ll do something I rarely do in polite company: I’ll tip my hand. I would likely tell you to go to Purdue.

And I think Warren might, too.