How did Warren Buffett get rich?
In 1930, during the great depression, there was a family who was struggling with their lives and after so many efforts one of the family members (father), failed to get hired at the family grocery store. Without any job and money, the family of four ran up a tab of grocery bills at the store to put food on the table, and even then, his mother sometimes skipped meals. But, there was a little boy who was very depressed to see his family’s situation.
After a few years, his family achieved financial health which was worth living. His father started a small stock brokerage firm. Warren Buffett collecting Coke bottles to make some money by selling them at a very young age.
He took a book from a library 'One Thousand Ways to make $1000' and like purchasing a penny gauging machine as his first speculation from his gathered cash. When he was 15, he previously had total assets of about $6,000
He started his journey by buying multiple stocks for $38 apiece. He filed his first tax return during his teenage. At the age of 20, he had already bought a stake in a 40-acre farm in Omaha, Neb.
At age 22, Warren Buffett’s net worth was just $20,000. By the time he reached 25, his net worth was between $140,000 and $174,000. He topped the $1-million mark at around when he was 30 years old. By age 42, his personal net worth was at a high of $34 million. He topped the $1-billion mark at around when he was 56 years old. Today, at the age of 89, Warren Buffett’s net worth is $88.9 billion.
Warren E. Buffett had reached his childhood dream of becoming a millionaire at the age of 30, but this doesn’t stop Warren Buffett. He continued seeking new ventures and found an opportunity to invest in a New England textile company called Berkshire Hathaway, and Warren gradually shifted the primary business’s focus to establish a holding company that acquires many different companies. Today Berkshire Hathaway is a multi-billion dollar holding company that owns many businesses.
After so many years, he was the owner of the company which was named as the fourth largest company in Fortune 500. He is the only person who has ever built a company from scratch that is in the Top 10 of Fortune 500.
Even after he became wealthy long ago, he didn’t change much of the way he lives his life. He lives in the same home he purchased before he was wealthy and drives a modest car. His house is only 6,570 square feet that have five bedrooms and two bathrooms. He spends nearly 70% of his time reading, and analyzing stocks. And during his free time, he spends 7-8 hours a week playing the game bridge. He enjoys the challenges that the game of bridge presents.
He had worked hard acquiring wealth at such a young age that made him the person he is today. I believe anyone can replicate some part of his methods of building wealth. It’s not an easy task since some might argue that living frugally like Warren Buffett is impossible. You don’t have to replicate the way he lives his life, but applying some of his methods to your life could do good to your financial goal. Starting an early career, modest lifestyle, and discipline investing could compound to great wealth if your goal is to have financial freedom and early retirement.