Warren Buffett started investing when he was just 11 years old.
He turned that head start into the world's eighth-largest individual fortune.
Buffett describes the power of compounding "as building a little snowball and rolling it down a very long hill".
And compounding brought 99% of Warren Buffett’s net worth after his 50th birthday.
Despite his staggering wealth, Buffett is known for his frugality. He still lives in the same house he bought in 1958 and pays himself a modest $100,000 a year from Berkshire Hathaway.
Probably not very many 11-year-olds are reading this, but there are lessons here for the rest of us:
• It's not just about how much you make, but how much you keep and reinvest
• The earlier you start investing, the more time your capital has to compound
• Embrace a long-term, disciplined approach and let the power of compounding work in your favor
Start yesterday.
Via FinMasters
