Warren Buffett Was Asked How A Regular Person Gets Rich? He Detailed Exactly How He’d Make $30 Billion Starting Over With Only $10,000
Don’t wait to get started if you want to be as rich as Warren Buffett. That’s the advice the legendary investor shared in 1999 at Berkshire Hathaway’s annual shareholder meeting. Buffett had a net worth of about $30 billion at the time. Today, his fortune has grown to over $147 billion. When asked how to build such wealth, Buffett didn’t hesitate.
“Mr. Buffett, how can I make $30 billion?” someone asked. Buffett laughed and responded, “Start young.”
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He then went on to explain his philosophy, using his signature snowball analogy. “Charlie’s always said that the big thing about it is we started building this little snowball on top of a very long hill,” Buffett said, referring to his longtime business partner, Charlie Munger. “So we started at a very early age in rolling the snowball down, and of course, the snowball – the nature of compound interest – is it behaves like a snowball of sticky snow.” The key, he explained, is having a “very long hill,” which means either starting early or living a long life.
But what if you’re not a teenage investing prodigy? Buffett laid out exactly how he’d approach investing if he were starting over with just $10,000. “I would do it exactly the same way if I were doing it in the investment world,” he said. “If I were getting out of school today and I had $10,000 to invest, I’d start with the A’s. I would start going right through companies.”
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His strategy would be to focus on smaller companies, where “there’s more chance that something is overlooked.” He acknowledged that the investing landscape had changed since 1951, when he could leaf through stock listings and find obvious bargains. But the fundamental principle remained the same: “You have to buy businesses – or little pieces of businesses called stocks – and you have to buy them at attractive prices, and you have to buy into good businesses.” Even though he said this nearly 26 years ago, his advice still holds up. Some might argue that times have changed, but Buffett was clear: “That advice will be the same a hundred years from now, in terms of investing.”
