I replot the data of Warren Buffett's wealth from the link that I found, to examine how he builds up his wealth over the years. It's an amazing chart that look like a hockey stick.
The most profound things about this finding is life of super rich building begins at 50s. Take a look at this chart of how Warren Buffett's nett worth increased over the years. Warren Buffett nett worth is close to about USD 67 billion when he is at his 80s, represent the gains of almost 99% after 50 year old. By the time of 50s, USD 20 million is not a number that impossible for many people to achieve. It is certainly quite achievable but what he did with the foundation that they builds up was really amazing.
"My wealth has come from a combination of living in America, some lucky genes, and compound interest." – Warren BuffettTime and compounding interest are truly very powerful forces in the universe. I guess I have just witnessed that.
We may not be able to replicate what this man has done but I am certainly learn a few things from him. One thing is really avoiding stupid mistakes. How many of us wasted too much time that we will not be able to replenish once it is gone.It takes a man to 30 years to build up a foundation to be ready to play the biggest game in one's life. The real game starts at 50s.
Secondly what we did after 50s is another thing. Most people may be thinking of starting to spend what they have thinking their days were numbered and better be happy and partying like there is no tomorrow. How wrong!
For sure, we may not be a billionaire by the age of 50s but for sure we got a shot of being a millionaire. If we don't screw up and continue to live prudently, at 10% compounding return, our net worth will grow staggering to over 17 million by the time we reach his age.
My paradigm certainly shifted. Beside knowing compounding interest and time, there is another secret. To many, we may have worked very hard for 30 years and while we were thinking going into retirement and start spending all the hard earned money, consider hoarding it for another 30 years. It will produce wealth that is so big that we may never imagine possible in our lifetime. :)