The Math Behind Warren Buffett's Net Worth

Warren did apply the strategy of using other people's money.

We won't talk about that in this example but we will do the math of compounding over an 80 year period like him.

Start with $0, Invest $50,000 per year, get a 16% compounded return.

Values after:

5 Years = $398,873

10 Years = $1,236,645

20 Years = $6,692,025

30 Years = $30,758,080

40 Years = $136,923,919

50 Years = $605,267,628

60 Years = $2,671,335,494

70 Years = $11,785,659,754

80 Years = $51,992,909,510

Yes, the math of that went from $0 to $51B in 80 years.

Calculate your own numbers at the below url or type in “compound interest calculator moneychimp” into your search bar.

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

Amazon link