The key stages in which Billionaire Warren Buffett laid the foundation for his gigantic fortune can give you insight into the creation of your fortune.
With his growing wealth every day, Warren Buffett is known as one of the richest investors in the world. But Omaha’s Oracle wasn’t always as rich as it is today. In fact, according to Business Insider, he earned 99 percent of his wealth after he was 50 years old.
But that doesn’t mean that 84-year-old Buffett is a late-blossoming flower. He set out for wealth at a very early age and created his fortune in decades. This is something everyone can do with a little observation and hard work.
Warren Buffett’s Wealth by Years
Buffett was born in 1930, at the height of the Great Depression, and showed that he had brilliant business intelligence in his childhood. He was already 11 when he started buying stocks. There were several Cities Service Preferred shares of $ 38 each. When he was a minor, he filled out his first tax refund, distributed newspapers, and bought several pinball tables in different businesses. By the time he graduated from high school, he owned 40 acres of land in Omaha, Nebraska and sold pinball tables for $ 1,200.
According to some rumors, when Buffett was 30, he even said he would become a millionaire and jump from the tallest building in Omaha.
Let’s take a look at Warren Buffett’s wealth and the average household income announced by the US Census Bureau to find out how rich Buffett was when he was your age compared to the rest of America.
Warren Buffett in his 20s: First $ 100,000
After graduating from college, Buffett worked as a stockbroker at his father’s commission. According to Dividend.com, when Buffet was 21, his fortune was almost $ 20,000.
At the age of 24, Buffett was offered a job with an annual salary of $ 12,000 by his mentor Benjamin Graham. According to the US Census Bureau, this figure was 3 times the average household income in 1954. This was the clearest evidence that Buffett had already learned to make money and that he was firmly on the path to wealth. By the time Buffett was 26, his fortune had reached $ 140,000.
Warren Buffett in his 30s: First millionaire title
By the time Buffett was in his 30s, his fortune was $ 1 million. In 1960, the average family income in the United States was $ 5,600 a year. Compared to Buffett’s $ 1 million fortune, the wealth of people working full-time at that time was only $ 5,400.
According to Dividend, at the age of 35, Buffett’s shares rose to $ 26 million. According to CNN, Buffett bought the majority of Berkshire Hathaway’s shares in 1965, and in 1968 the value of their shares rose to $ 104 million. In his late 30s, at the age of 39, Buffett’s fortune was $ 25 million.
Warren Buffett in his 40s: Leaping back from financial woes
By the time he was 43, Buffett’s fortune was $ 30 million. He used some of this capital a year ago to buy See’s Candies ($ 25 million), says The Motley Fool. And even in 2015, this acquisition was still an earning investment for Buffett. But it was a difficult time for Berkshire in the mid-1970s. In 1974, stock prices that dropped at the age of 44 reduced Buffett’s fortune to $ 19 million.
But nothing was enough to stop her investment skills, Buffett managed to recover her fortune. By the end of the 1970s, at the age of 47, he had raised his fortune to $ 67 million. The average household income in the US during this period was $ 16,530.
Warren Buffett in his 50s: now a billionaire
According to Dividend, Buffett’s fortune was $ 376 million in 1982 and rose to $ 620 million in 1983. In 1986, 56-year-old Buffett became a billionaire. He also had a salary of $ 50,000 from Berkshire Hathaway.
At that time, a normal American family earned almost half of Omaha’s Oracle. In 1986, the average household income was $ 24,900. By the age of 60, Buffett’s fortune had reached $ 3.8 billion.
Warren Buffett in his 60s: A Huge Increase in Berkshire and Buffett’s Wealth
In a letter to Berkshire Hathaway shareholders in 1990 Buffett stated that the company’s revenue would decline in the coming years, and it turned out to be right in the second half of 1990. But towards the end of the period, the company’s value rose to $ 362 million. By the time he was in his 60s, Buffett’s fortune had increased, and by the age of 66, he had reached $ 16.5 billion.
In the 1990s, the wealth of an average American family could not even be compared to Buffett’s. According to the US Census Bureau, the average household income at that time was around $ 42,000.
Warren Buffett in his 70s: Philanthropy, Authority and Ascension
In 6 years – from the age of 66 to 72 – Buffett’s fortune was more than twice as high. At the age of 72, his fortune had risen to $ 35.7 billion. But Buffett was about to distribute his fortune, and in 2006 he said he would donate 85 percent of his fortune to five institutions over time.
The average household income in 2000 was $ 42,148.
Warren Buffett in his 80s
In mid-August 2015, Buffett’s $ 67 billion fortune made him one of the world’s richest after Bill Gates and Carlos Slim Helu, but 84-year-old Buffett doesn’t seem to stop at all, and despite his 11-digit fortune, Buffett is only 100,000 a year from Berkshire Hathaway. He continues to spend his salary in a frugal way.
The master investor still earns far more than an ordinary American family. According to the latest figures from the US Census Bureau, the average household income in the US is around $ 51,939.