Have you ever wondered how your wealth compares to a billionaire’s wealth at your age? We all know that becoming billionaire does not happen overnight, so how do the top 1% of the world do it and how much money did they have when they were younger?
Business Insider released an article that shows how much was Warren Buffett worth when he was in his 20’s, 30’s, 40’s, 50’s, 60’s, 70’s and his 80’s, so we decided to summarize it for you guys and actually dig a little deeper and give a little more accurate figures.
Warren Buffett in his 20’s:
Warren Buffett graduated from University of Nebraska–Lincoln when he was only nineteen years old, where he earned a Bachelor of Science in Business Administration. He enrolled in the Columbia Business School after he was rejected from the Harvard Business School. After graduating, he worked for Ben Graham, where he was paid a salary of $12,000, which may not seem like a lot of money, but in 1954 $12,000 was considered a lot of money by many people. To put it in perspective – the salary that Mr. Buffett was receiving was about three times higher than the average household income. By the age of 26 Warren Buffett was worth close to $140,000, which is about $1,202,900.42 in today’s money. At the age of 27 Buffett he added two different partnerships to his already existing Buffett Associates Ltd. – reaching the total number of five partnerships, which he was managing all from the comfort of his home and after just 3 years Buffett doubled the money of the partners. The impressive fact about that part of Buffett’s life is that he was not single, he was married to Susan Buffett and had two children and a third one on the way when he added the other two partnerships.
Warren Buffett in his 30’s:
At the age of 30, in 1960 Mr. Buffett asks one of his partners to convince 10 other people who were doctors like his partner to join Buffett’s partnership and each contribute $10,000. Eventually a total of eleven partners joined and from that point the Buffett’s net worth grew even more. Buffett made his first million dollar investment when he was 31, which in today’s money is $7,807,209.41. At the age of 32 Buffett went to New York with his wife to ask his old friends and acquaintances to contribute more money to his partnership and eventually gained two more partners after collecting several hundred thousand dollars. Buffett Associates Ltd was now worth close to 7.2 million dollars of which Buffett owned just over $1,000,000 in assets.
Buffett made some investments that really paved the path to becoming a billionaire. He discovered Berkshire Hathaway in 1962 and sold his company Dempster for 3 times what it was worth at the time of the original investment by Buffett. By the age of 36 his partnership had grown to a net worth of over 26 million dollars, due to Buffett being the largest shareholder of Berkshire Hathaway.
Warren Buffett in his 40’s:
By age 43, Buffett’s personal net worth was at a high of $34 million, which is when his company began to purchase stock in Washington Post Company. Due to falling stock prices Buffett’s net worth fell by over 50% around age 44. However, Buffett and Berkshire Hathaway were not stressed about the falling stock prices and in fact in 1977 when Buffett was 47, they indirectly purchased the Buffalo Evening News for $32.5 million and in 1979 they began to acquire stock in ABC. It is in his forties that his wife Susie also leaves him, although not officially divorcing him.
Warren Buffett in his 50’s:
With the recovery of the US stock market in 1982, the net worth of Buffett also recovered. His net worth in 1982 (age 52) was $376 million and increased to $620 million in 1983. Three years later Buffett would go on to become a billionaire after Bershire Hathaway broke $3000 per share. In 1987 with a stock market crash Berkshire Hathaway lost about 25% of its value and Buffett’s net worth also decreased because of the loss, however the decrease was not as much as it was in his forties. However, as its known to happen, the stock market recovered and the company gained even more value. By 1989, Buffett’s net worth was close to 4 billion dollars due to the fact that Bershire Hathaway was worth over $8000 per share.
Warren Buffett in his 60’s:
In 1990 Buffett believed that Berkshire Hathaway’s net worth would decrease in the 1990s, and he was completely right about that. However, the company was able to close the decade with a net worth of up to $362 million. By 1996, Buffet’s personal net worth grew to over $16.5 billion.
Warren Buffett in his 70’s:
From 1996 to 2002 Buffett’s net worth grew at a substantial rate – it grew to a little over 2.4 times. His net worth in 2002 was estimated to be around $35.7 billion. In 2006, Buffett joined Bill Gates in pledging to donate 85% of his wealth to five foundations over time when he passed away. It is safe to say that his net worth in 2006 was over $38 billion. During the 2000’s is really where Warren Buffet’s net worth switched gears and started growing on another level.
Warren Buffett in his 80’s:
In his 70’s Buffet’s net worth grew at an approximate 45 degree angle of the stock market’s growth. So it is not surprising that his net worth grew way over $65 billion by 2014. Buffett reportedly only earns a salary of $100,000 according to the Business Insider and does not spend is fortune like many people would if they had as much money as him. He continues to make smart business decisions and investments to try to grow his company’s net worth and along the way grow his own net worth.
Throughout his life he has constantly lived on a set set salary that has been more than what the average Americans make and has not relied much of his net worth. That formula is definitely a successful one – he saved most of his money by simply not spending it and being smart about what he used his salary.