When I was 19 or 20 years old, an army mate once said loudly in the bunk that stuck with me.
“You know what guys, Warren Buffett is the only guy in Forbes who built his entire fortune on ‘nothing’.”
Think about the big entrepreneurs on Forbes who sold software, ran furniture companies, built factories. Buffett? He did none of that.
Instead he simply invested in shares of businesses to accumulate his fortune. That comment planted a seed in me.
Today, Warren Buffett is one of the richest people in the world – a $149 billion networth. He built that fortune by compounding Berkshire Hathaway at a 19.9% rate a year for the last 60 years. That’s nearly double the return of the S&P 500 Index.
If you had put $10,000 into Buffett’s Berkshire Hathaway and held it until today, you would have turned your $10,000 into $392million. That’s impressive.
What surprised me was this. Warren Buffett didn’t invest the Wall Street way. He had no army...