워렌 버핏의 복리 비법과 부의 성장 방법 정리

Small adjustments in growth assumptions can frequently result in absurd and unworkable figures.

 When investors consider Warren Buffett's spectacular investment career, which has lasted five decades and earned him a personal fortune of more than $100 billion, they frequently ignore the key to his success.

In this video, we will discuss Buffett's guide for building wealth over decades.

 We will delve deeper into his background, his steps, and his values.

 What is the key to his prosperous investment career? What does Warren Buffett know that so few people do? We will answer all of these questions so stay tuned and make sure to watch this video to the end.

This is Financial Intellect, where we promote that to be finance savvy, we are your buddy! Now let's get right into the video! THE ADVANTAGES OF COMPOUNDINGTime is the most powerful instrument an investor can use to leverage compound interest and grow their money at an incredible rate.

 The financing provided by Queen Isabella for Christopher Columbus' mission to locate a new path to Asia was roughly $30,000.

 This is today regarded as a somewhat successful venture capital application.

 If the thirty thousand dollars invested at the time had compounded at a rate of 4%, it would have grown to two trillion dollars by 1962.

In another case, in 1626, the Dutch purchased the entire island of Manhattan for 24 beads and trinkets.

 They were given around 22.

3 square miles or 622 million square feet.

 They estimated the land value to be a little less than 12.

5 billion dollars in 1965, yet the Indians only needed a 6.

5 percent return to win.

 In 338 years, 24 dollars would have become 42 billion dollars at 6.

5% return each.

 And if they can just squeeze out an extra half-point to obtain 7%, the current value would be 205 billion.

 AN EXPERIMENT IN THOUGHTBuffett began investing at the age of ten.

 Buffett had a net worth of $1 million at the age of 30, or $9.

3 million today when adjusted for inflation.

 But what if he spent his teens and twenties seeing the world and discovering his love, and by the age of twenty, his net worth had grown only to $25,000? Let us imagine he continued to earn the exceptional annual investment returns of 22% that he had been able to achieve throughout his career.

 But, at the age of 60, he chose to stop investing and focus on golf and spending time with his grandchildren.

 What is his current net worth? Instead of his current net worth of $100 billion, he has a net worth of $11.

9 million dollars, which is a fraction of his true net worth.

Buffett's financial success may be traced back to the financial foundation he established in his youth and the longevity he maintained in his later years.

 Compounding works in this way.

 Buffett is the richest investor of all time, but he is not the best when it comes to average annual returns.

 WARREN BUFFETT'S APPROACH TO COMPOUNDINGBuffett, who is 90 years old and has a net worth of over $100 billion US dollars, is an investor who consistently makes the news.

 The Oracle of Omaha is planning to scale back his financial and philanthropic efforts while still making occasional public appearances.

 Buffett withdrew from the Bill and Melinda Gates Foundation as a trustee.

 And he is no longer involved in Berkshire Hathaway's day-to-day operations.

 This is because Buffett recognizes that he has reached an age when he should take it at ease.

 He is a man who has a deep awareness of the passage of time, and we can confidently claim that he has perfected this understanding of compound interest.

 Buffett's unwavering commitment to compounding is responsible for roughly half of his riches, which come from investment.

 He has amassed over a billion dollars each year over the last 25 years, providing a stronger case for compound interest.

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 Now, let's continue with the next lesson.

CONSISTENCY IS ESSENTIAL Buffett's annual compounding rate, according to investors who have examined his investment career, is less than 25%.

 While this may appear to be a good return on investment, it pales in comparison to what Jim Simons, the renaissance technologies hedge fund manager, has accomplished from the late 1980s.

 The annual rate is closer to 66%.

 While Simon's annual compounded return is more than three times that of Buffett, his net worth is 70 billion dollars less.

 So, if Simons is a better investor, why is there such a significant disparity between the two? It is because Simons did not really hit his stride until he was 50 years old.

 He hasn't had nearly as much time to compound as Buffett.

 Buffett would be worth 630 trillion dollars if he made 66% each year for the 70 years he had to build his fortune.

 Buffett has stayed ahead thanks to his commitment to long-term investing and compounding.

 He is distinguished by his long-term steadiness and investment discipline.

 While Buffett's annual return of 22% may not appear to be much when compared to day traders who may make $100 in a single trading session, day traders are unable to maintain these winning streaks.

 In fact, they frequently go negative on their market position, wiping out any earlier gains.

 THE MOST IMPORTANT INVESTMENT APPROACH Buffett believes that investors should prioritize strategy over returns.

 While seeking the highest possible returns may appear appealing on the surface, Buffett feels it is not a long-term strategy and is counterproductive to building a fortune.

 The ideal plan any investor can aspire for is to achieve good returns on an exponential basis.

 Compound interest is the only reasonable technique to accomplish this.

 Many people overlook compounding because they treat it as an abstract notion, despite the fact that online compound interest calculators can tell you exactly how much you'll make in the future.

 Making monthly payments to a daily compounding high-yield savings account may not be enough to fund your retirement.

 You should, however, endeavor to imagine bigger.

 When it comes to retirement, it is especially necessary to think about investing.

 It may appear far away, but since it is so far away, it is the finest opportunity you have to make compound returns on your money.

 Compound returns imply that the earlier you start investing, the less you'll need to invest overall to reach the same level of wealth by retirement.

 FOLLOWING WARREN BUFFETTWarren Buffett puts his Berkshire Hathaway profits into his portfolio on a regular basis, depending on compounding to build his money.

 Investors should try to follow in Buffett's footsteps.

 Economic cycles, trade methods, and sector bets are all covered in books but the most powerful and significant book, however, should be titled waiting.

 It is only one page long, showing a graph of economic progress over time.

 The practical lesson here is that compounding's counterintuitive nature may be to blame for most failed trades, lousy tactics, and unsuccessful investing initiatives.

 You can not blame them for putting their entire effort into maximizing their financial returns.

 It may appear to be the best method to get rich, but successful investing is not always about making the most money since the best returns are usually one-time events that can't be duplicated.

 It is all about making decent returns that you can count on and that you can repeat over and over again.

 This is when compounding takes over.

CONCLUSION Buffett's success is due to his ability to be patient and let time and compound interest develop his wealth, not his investing skills.

 Buffett's legacy stands tall among others who have come before him, and he is the world's wealthiest investor with a fortune of over $100 billion.

 Buffett is a good example of how investors should start expanding their riches early because even a few years can cost millions or billions of dollars.

 And those are the financial lessons from Warren Buffett about the power of compound interest.

 What are your thoughts on Warren Buffett's approach to compound interest? What are some ways you think you may use compound interest in your portfolio? Let us know in the comment section below.

 We'd love to hear your thoughts on this.

And with that, thank you very much for watching.

 If you like what you've watched, stay tuned for more videos! Bye Financial buddies~