Donald Othmer, a chemical engineering professor in Brooklyn, passed away in 1995, followed by his wife, Mildred, in April 1998. Despite leading unassuming lives, their combined estate stunned their friends with its value of $800 million, almost entirely dedicated to charitable causes.

A Legacy of Academic and Professional Achievement

Donald Othmer was born on May 11, 1904, in Omaha, Nebraska. He attended Omaha Central High School before securing a scholarship to the chemical engineering program at Chicago’s Armour Institute of Technology (now Illinois Institute of Technology). However, he later transferred to the University of Nebraska, where he graduated in chemical engineering in 1924. He went on to earn a master’s degree from the University of Michigan in 1925 and completed his doctorate in chemical engineering from the same institution in 1927.

From 1927 to 1931, Othmer worked as an engineer at Eastman Kodak in Rochester, New York, where he amassed an impressive 40 patents. His career then took him to the Brooklyn Institute of Technology in 1932, where he began as a lecturer in the newly established Department of Chemical Engineering. He remained at the institute, eventually becoming department head in 1937—a role he held until 1961, when he was appointed Distinguished Professor. Although he attained emeritus status in 1976, Othmer never officially retired and continued to contribute actively to the work of what was then Polytechnic University until his passing on November 1, 1995.

Othmer dedicated nearly six decades to teaching and mentoring numerous master’s and doctoral students. As a prolific scholar, he contributed significantly to the field, holding over 150 U.S. patents and publishing approximately 350 papers, including seminal works on distillation theory and practice.

In 1945, Othmer embarked on a collaboration with fellow chemist Dr. Raymond Eller Kirk (1890-1957) at the same institute, leading to the creation of a seminal reference work, the Kirk-Othmer Encyclopedia of Chemical Techniques. Their partnership resulted in the publication of the first volume in 1947, with the complete first edition finished in 1949. Subsequent editions followed, culminating in a fifth edition comprising 27 volumes released in 2007, with the latest edition scheduled for publication in 2021. Othmer’s contributions earned him accolades from esteemed institutions such as the American Society of Chemical Engineers, the American Chemical Society, the American Society of Chemists, and the Chemical Industry Association. In 1987, he was honored with the New York City Mayor’s Honor Award for Science and Technology. Additionally, he was recognized as one of the 75 greatest chemical scientists of all time by readers of Chemical & Engineering News.

Accidentally Became a Billionaire

So how did such a brilliant scientist become a millionaire?

Othmer, with a professor’s salary and a steady stream of patent fees, should have been a middle-class American. However, their fortunes took a dramatic turn when an early investment propelled them into billionaire status.

Warren Buffett, an old friend from their hometown of Omaha, launched an investment partnership in the 1950s. In the early 1960s, the Othmers each contributed $25,000 to the partnership, totaling $50,000. This was a significant sum at the time. Between 1956 and 1968, Buffett’s partnership delivered an impressive annualized return of 29.5% before fees. By the late 1960s, the Othmers’ initial investment of $50,000 had likely grown to over $1 million before expenses.

However, Buffett decided to halt stock purchases at this juncture. He believed it was becoming increasingly difficult to identify undervalued companies in the stock market. Despite having specific investment philosophies and criteria, the market did not always align with his approach. As the stock market performed relatively well in the 1960s, Buffett closed the partnership to new investors in 1966 and shifted his focus to acquiring private companies outright.

In 1968, Buffett experienced his most successful year, outperforming the Dow 30 by over 50%. The following year, he announced the liquidation of his partnership. Buffett provided departing partners with two options: 1) withdraw cash and exit the partnership, or 2) convert their investment into Berkshire Hathaway stock. For partners opting to remain in the stock market, Buffett recommended investing in the Redwood Mutual Fund, managed by Bill Ruhn.

Many investors opted to withdraw cash at the time, but the Othmers’ decision proved to be astute. In 1970, the couple acquired approximately 14,500 shares of Berkshire Hathaway at $42 per share.

Remaining steadfast in their approach, the Othmers adopted a buy-and-hold strategy, refusing to sell any shares. Despite market downturns, such as the (-48.7%) decline in Berkshire Hathaway shares in January 1974 and another drop of (-23.1%) in 1990, they remained resolute. Living a modest life with no children and relying on standard salary and pension income, they had no immediate need to liquidate their investments.

Their unwavering commitment yielded substantial returns. Upon Mr. Othmers’ passing in 1995, he bequeathed his approximately 7,000 shares of Berkshire Hathaway stock, valued at $30,000 per share, totaling around $210 million. Following Mrs. Othmers’ demise in 1998, her entire estate, including roughly 7,000 shares in her name, was donated. At a share price of approximately $77,250, her shares amounted to about $578 million. Consequently, the Othmers unintentionally ascended to billionaire status.

Throughout their lives, the Othmers generously supported various causes, particularly in local history, healthcare, and institutions related to chemistry and chemical engineering. They also contributed to architectural and memorial awards, including the AIChE Sophomore Academic Excellence Award. Their estate, totaling hundreds of millions of dollars, was primarily directed towards charitable and nonprofit organizations. Notable beneficiaries include the Brooklyn Polytechnic Institute, Long Island College Hospital, the University of Nebraska, and the American Chemical Heritage Foundation, each receiving substantial sums. Planned Parenthood of New York also received a significant bequest to establish the Othmers Institute, while other institutions received smaller yet meaningful contributions.

As a youngster, Mr. Othmer earned income by gathering dandelions from neighbors’ lawns and delivering newspapers, instilling in him a lifelong habit of frugality. Together with his wife, they led a comfortable yet unassuming lifestyle, seldom discussing their financial affairs. Many of their close acquaintances were unaware of their early investment in Warren Buffett’s ventures, which they held onto until their passing. Their longtime friend Warren Buffett remarked to The New York Times, “They simply went with the flow. Their investments altered their wealth, but not their way of life.”

In one’s lifetime, numerous decisions regarding wealth are made, yet only a select few prove to be truly pivotal.