Even the people who knew her wondered where she got all that money? Which made the US$7 million she left to charity after her death at age 100 all the more mysterious. She was a lovely lady, who lived a modest and quiet life. She lived in a one-bedroom house and worked her whole career as a secretary. She never married, had kids or drove a car. That's how you get compounding to work.Ī couple of years ago, I read the story of two very different investors by Wall Street Journalist Morgan Housel. His skill is investing, but his secret is long term investing. Virtually all of Warren Buffett's financial success can be tied to his early start and the longevity he maintained in his senior years. 99.9% less than his actual net worth today. What would his net worth be today? Approximately $11.9 million. What if Warren had instead started investing at age 30 like most people, with a modest sum of $25,000, but still generated his incredible compound returns of 22% annually? But then he quit investing and retired at age 60 to go fishing and spend time with his grandchildren. $70 billion of this has accumulated after his mid-60s. Today at age 90, Warren Buffett's net worth is around US$80 billion. It's also because he has been an investor since he was a 10-year old child. Warren Buffett's fortune isn't just due to him being a great investor. I can't speak to the quality of your 'lucky genes', but I know for sure that we all have the ability to utilise the power of compounding for financial success. While we live in New Zealand, we are able to freely access investment opportunities around the world including America. In 2006, he wrote, "My wealth has come from a combination of living in America, some lucky genes, and compound interest". Warren Buffett is the perfect example of how you can grow your money through compounding. What is important is that every investor understands the power of compounding and effectively employs it in their investing endeavours. He who understands it, earns it.he who doesn't, pays it." Whether or not it was Einstein who first spoke these words is not important. Albert Einstein is credited with the quote, "Compound interest is the eighth wonder of the world”.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |