The IRS auditor who beat Warren Buffett at his own game

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Not many people can claim to be a better investor than Warren Buffett. However, a little-known woman named Anne Scheiber beat the “Oracle of Omaha” at her own game. When Scheiber retired in 1944, he had only a $5,000 pension. She invested wisely enough to grow her nest egg into a $22 million fortune by the time she died at 101. Not even Buffett could match his ROI.

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Anne Scheiber worked as an auditor for the Internal Revenue Service for 23 years. During her entire employment with the agency, she was never promoted and never received more than $4,000 in annual salary. She did not attend the Wharton School of Business or any of the other Ivy League colleges that typically produce America’s top bankers and investors.

Anne Scheiber’s $5,000 pension was not extravagant; he was 51 when he got it. That’s roughly the equivalent of $89,000 in today’s money. It wasn’t enough for her to retire comfortably in 1951. Faced with several decades of living on relatively little money, Anne Scheiber had no choice but to invest wisely to build her fortune.

So how did he do it? Scheiber and Buffett never met, but they shared a few things. Chief among them is the commitment to living frugally. Scheiber preferred to walk to work rather than take the bus to save money. Her lawyer Ben Clark told Money Magazine: “She was saving at least 80% of her salary. In those days, you could get a hot dog lunch at Nedick’s for 15 cents, but I know he found a place even cheaper.”

The closest modern equivalent to a 15 cent hot dog would be Costco’s famous $1.50 hot dog and drink special. It would probably be impossible for Anne Scheiber to beat that price, but she would certainly find other innovative ways to save if she were alive today. It’s not hard to imagine her scouring the internet for special deals on all her favorite products. But saving money is only half the battle.

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Scheiber still had to increase his fortune. To do this, she adopted an investment strategy remarkably similar to Buffett’s. She believed in investing in industries she had personal knowledge of and invested in for the long term. Scheiber’s broker, William Fay, told the New York Times that “He was never looking for a quick buck. Her whole idea was to achieve long-term performance.”

Scheiber’s portfolio included top stocks such as PepsiCo, Chrysler, Bristol-Myers and Columbia Pictures. She also made it a point to stay very informed about her investments. Anne faithfully attended shareholder meetings for her portfolio companies. As the portfolio grew in value, her experience as an IRS auditor came in very handy.

Scheiber strategically held investments or liquidated them to minimize his capital gains tax exposure. In the end, Scheiber’s portfolio grew to about $22 million—a 4,400 percent gain on her initial $5,000 pension. After Scheiber died in 1995, her lawyer, Ben Clark, told the New York Times: “Do you think Warren Buffett, you know, that guy, was good at this sort of thing?

Perhaps the most amazing thing about Scheiber is that he didn’t start investing until he was in his 50s. It’s also encouraging for middle-aged investors who have delayed retirement planning. Living within your means and investing wisely for the long term can still help. It worked for Anne Scheiber and Warren Buffett. It could definitely work for you too.

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This article The IRS Auditor Who Beat Warren Buffett at His Own Game originally appeared on Benzinga.com