During the 1999 Berkshire Hathaway annual shareholders meeting, an ambitious attendee named Grant Morgan posed a compelling question: “If you were starting out again today in your early 30s, what would you do differently or the same in today’s environment to replicate your success? In short, Mr. Buffett, how can I make $30 billion?”
Buffett’s response didn’t focus on get-rich-quick schemes or risky ventures. Instead, he unveiled a timeless blueprint for building wealth, emphasizing the importance of starting early, harnessing compounding interest, and practicing disciplined investing.
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He explained, “Charlie’s always said that the big thing about it is we started building this little snowball on top of a very long hill. We started at a very early age in rolling the snowball down. And of course, the snowball, the nature of compound interest, behaves like a snowball of sticky snow. The trick is to have a very long hill, which means either starting very young or living to be very old.”
Buffett then detailed his strategy if he were starting out today. “I would do it exactly the same if I were in an investment world. If I were getting out of school today and I had 10 thousand dollars to invest, I’d start with the A’s. I would start going right through companies and probably focus on smaller companies because I would be working with smaller sums and there’s more chance that something is overlooked in that arena.”
He added, “You have to buy businesses and your little pieces of business are called stocks. You have to buy them at attractive prices, and you have to buy into good businesses.”
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While some may feel the advice would change based on market conditions, Buffett clarified this wasn’t the case. He explained, “That advice will be the same 100 years from now regarding investing. That’s what it’s all about.”
He stressed the importance of independent thinking and thorough research. “You can’t expect anybody else to do it for you,” he said. He emphasized that people will not share valuable investment tips, so individuals must understand their own knowledge and limitations. “You have to pursue it very vigorously and act on it when you find it,” he added. He also highlighted the need to think for oneself rather than seeking agreement or validation from others.
Despite being delivered 25 years ago, Buffett’s advice remains highly relevant today. Although theoretically straightforward, it emphasizes the importance of starting early, thinking independently, and maintaining disciplined investment practices.
Consulting a financial advisor can be invaluable for those seeking to build a diversified portfolio, especially for individuals who may not have the expertise to pick stocks themselves.
Buffett’s response is a reminder that the path to financial success, though requiring patience and a long-term perspective, is well within reach for those willing to learn and take action.
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*This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.
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This article Warren Buffett Was Asked If He Had To Start Over In His 30s, How Would He Make $30 Billion Today — Here’s How He Would Do It With $10,000 originally appeared on Benzinga.com
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