Warren Buffett, just hearing his name evokes thoughts of investment and wealth. His incredible fortune and successful investment stories inspire many. However, his advice encompasses timeless wisdom that goes beyond mere monetary gains.
Warren Buffett’s 1999 Shareholders Meeting
In the 1999 Berkshire Hathaway annual shareholders meeting, an ambitious attendee asked Buffett:
If you were in your early 30s and starting to invest now, what would you do differently and what would you do the same? Simply put, how can I make $30 billion?
Long-term Strategy Over Short-term Gains
Buffett’s answer was clear. He did not recommend any short-term get-rich-quick schemes or risky adventures. Instead, he emphasized the importance of starting early, leveraging the magic of compounding, and practicing disciplined investing.
Charlie and I started rolling a small snowball down a very long hill at a very young age. The secret is to have a very long hill.
Buffett’s Modern Investment Strategy
Buffett mentioned that if he were to start again today, he would employ the same strategy.
If I graduated from school today and had $10,000 to invest, I would start with A-grade companies. I would focus on smaller companies because they allow for investing smaller amounts and there is a greater chance of finding overlooked opportunities.
Find and Analyze Companies Yourself
Buying companies means considering stocks as small portions of a business. It is crucial to buy good businesses at attractive prices. Buffett dismissed the idea that his advice might change based on market conditions.
Investment advice will be the same 100 years from now. That is the core of investing.
Independent Thinking and Thorough Research
Buffett stressed the importance of independent thinking and thorough research.
You cannot expect others to do it for you. People are not going to share valuable investment tips, so you need to understand your own knowledge and limitations.
He also said, “You must be very proactive in your research and act immediately when you find opportunities.”
Conclusion: Buffett’s Advice Still Relevant Today
Even though Buffett gave this advice 25 years ago, it remains relevant today. The principles are simple in theory: start early, think independently, and maintain disciplined investment practices. Buffett’s answer reminds us that while patience and a long-term perspective are necessary, the path to financial success is possible with the willingness to learn and implement these strategies.
Reference: Benzinga, “Warren Buffett Was Asked If He Had To Start Over In His 30s, How Would He Make $30 Billion Today — Here’s How He Would Do It With $10,000”