Everyone has to start somewhere, even the wealthiest, most successful people.
Billionaire Warren Buffett hasn’t always been as incredibly rich as he is today — in fact, 99% of his wealth was earned after his 50th birthday.
The investing legend has been slowly building his fortune over the years, and today, the 85-year-old billionaire is one of the richest men in the world, with an estimated net worth of over $US60 billion.
How did he come to earn such a mind-blowing amount of money?
Motivational speaker and author of “MONEY: Master The Game,” Tony Robbins, decided to ask him.
“And he smiled at me and said, ‘Three things: Living in America for the great opportunities, having good genes so I lived a long time, and compound interest.”
Buffett has always been an advocate of keeping things simple and focusing on the long-term — that’s why he recommends low-cost index funds.
One of the keys to Buffett’s wealth is simply time — 60 plus years of smart investing has allowed him to reap the benefits of compound interest.
Compound interest is when the interest earned on your investments earns interest itself — it’s what causes wealth to rapidly snowball, and in Buffett’s case, snowball to billions and billions of dollars.
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