From The Motley Fool · Neil Patel · · 50s
Warren Buffett's Compounding Power
Warren Buffett's compounding strategy built 99% of his $151 billion net worth after age 65.
In brief
Warren Buffett's compounding strategy built 99% of his $151 billion net worth after age 65. Warren Buffett's compounding strategy generated 99% of his $151 billion net worth after age 65. Originally reported by The Motley Fool.
Warren Buffett's compounding power
Warren Buffett's investing track record is widely publicized but one statistic is mind-boggling.
The compounding effect
The math shows a $10,000 investment growing at 15% annually becomes $662,000 after 30 years.
Buffett's net worth timeline
About 99% of Buffett's $151 billion net worth was built after his 65th birthday.
Charlie Munger's advice
Charlie Munger said, 'The first rule of compounding is to never interrupt it unnecessarily.'
“The first rule of compounding is to never interrupt it unnecessarily”
Why compounding works
Compounding requires avoiding selling to prevent tax bills and let returns grow long-term.
The takeaway
Warren Buffett's compounding strategy generated 99% of his $151 billion net worth after age 65.
