Vintage Rolls Royce Business

Warren Buffett and his friend Don Danley bought a non-working Rolls Royce for $300, fixed it up, and created a profitable rental business while in high school.

Key Points:

• Initial Investment:

  • Bought broken Rolls Royce for $300
  • Additional $50 in parts for repairs
  • Danley handled mechanical repairs

• Business Model:

  • Rent car on weekends to weddings for $100
  • Used car personally during weekdays to drive to high school
  • Low overhead since they did repairs themselves

• Key Success Factors:

  • Found undervalued asset (non-working luxury car)
  • Had technical expertise to repair (through Danley)
  • Identified profitable rental market (weddings)
  • Dual-use of asset (personal transport + rental income)

This represents an early example of Buffett's eye for undervalued assets and ability to generate cash flow through creative business models.