Nicole Buffett Disowned by Billionaire Grandfather Warren Buffett

Nicole Buffett has learned the hard way that there's a price to pay for provoking the ire of her grandfather, legendary billionaire investor Warren Buffett. She has so offended him, in fact, that he has completely cut her off.

According to Marie Claire Magazine, the controversy stems from Nicole's appearance in The One Percent, a documentary by Johnson & Johnson pharmaceutical heir Jamie Johnson that explores the fact that one percent of America's richest citizens control nearly half of the nation's wealth.

"I've been very blessed to have my education taken care of, and I have had my living expenses taken care of while I'm in school," says Nicole Buffett in the film. But when asked in the film how she thought her grandfather Warren Buffett would react to her appearance in it, she said, "I definitely fear judgment. Money is the spoke in my grandfather's wheel of life."

That she feared judgment from her grandfather Warren Buffet for appearing in The One Percent has turned out to be a self-fulfilling prophecy. Warren Buffett was outraged by her comments. He reportedly told his son Peter (Nicole's adoptive father) that he resented Nicole for taking on the self-appointed role of family spokesperson. A month after she appeared in the film, Warren Buffett mailed her a letter in which he wrote: "I have not emotionally or legally adopted you as a grandchild, nor have the rest of my family adopted you as a niece or a cousin." Ouch.

With the help of Jamie Johnson, Nicole attempted to repair the damage. To that end, Johnson filmed a follow up interview with Nicole in which she stated the following: "To pretend like we don't have a familial relationship is not based in reality. I've spent years of my life at his home in Omaha. I'm shocked and hurt." This attempt at a reconciliation, however, was unsuccessful.

Nicole Buffett is not a blood relative of Warren Buffett. Might that have something to do with the frosty tone of his letter? When Nicole was 4, her mother married Peter Buffet, Warren Buffet's youngest child. Peter adopted both Nicole and her identical twin sister. Until their estrangement, Nicole had enjoyed a relatively close relationship with her grandfather. And she had always felt accepted by the family.

But the blood is thicker than water argument doesn't fly in this case. Especially when you consider the fact that Warren Buffett refers to inherited wealth as "the ovarian lottery." Warren Buffett has made it a rule to pay for the college education of each of his grandchildren - whether they are blood relatives or not - but nothing more.

This is unquestionably a sad story. It always is when family members become estranged. Was Warren Buffett's reaction too harsh? Was it really necessary for him to summarily dismiss Nicole for her transgression? This writer's answer to the foregoing questions is yes to the former, and no to the latter. Also, it seems to me that Warren Buffett can be cold and vengeful. In the interest of fairness, though, when your as rich as Warren Buffet, it's reasonable for you to question whether a person's attention and affections are based upon sincerity or what you can do for them monetarily.

Meanwhile, Nicole Buffett is surviving. She's a talented artist whose work has sold for as much as $8,000 apiece. She supplements her income by working part time at a boutique in San Francisco. Her annual income is $40,000 - which is, to be sure, a far cry from the billions of dollars a year that Warren Buffett earns, but she's not poverty stricken either. She'll make do. And, who knows, there could be a silver lining in the shattered relationship with her grandfather. Like a book deal, perhaps.

Source: Leah McGrath Goodman, The Billionare's Black Sheep, MarieClaire.com