Warren Buffett: How do you make $1,000 into $30 billion?

Buffett:

“Mr. Buffett, how do I make $30 billion?”

Buffett: “You start investing when you’re young. Charlie used to say, ‘It’s a good thing we started early. Imagine a snowball rolling down a very high hill.

When we were very young, we started investing, and our snowball grew bigger and bigger over the years as we rolled down from the top. And if you think of the hill as an age, you have to start investing in your early teens or even in your old age. Speaking of myself, if it were me, I would start doing the same thing I did years ago.

Let’s say I just graduated from university and I have ten thousand dollars to spend on investments. Then I would start going through everything, the companies would probably be small because I don’t have a lot of money.

Investors probably haven’t paid attention to these companies yet. Like Charlie said, it wouldn’t be as easy as it was in 1951 when we started, and you could figure it all out right away, but you can’t do anything about it, the process is basically the same.

You buy a company or small shares of a company, called stock, and you try to buy stock at bargain prices.

Another important point, buy stocks of promising companies – important, this advice will still be relevant a hundred years from now, because that is the very essence of investing.

And hardly anybody will help you, don’t wait for advice, that’s what I mean. People are unlikely to give you sensible ideas about which industries to invest in, that’s not the way business works.

I first visited Caico in January 1951, then went back to Columbia University, the same year I met analysts from various organizations that were leading the stock market at that time.

I thought I had found a great investment idea and wanted to share it with the cool stock experts. They told me that I had no idea what I was talking about, that they were not interested in my thoughts at all.

You have to go your own way, learn different areas on your own, find out what you’re good at and what you’re not. And once you find your specialty, confidently follow that path.

Do what feels most right to you, and don’t look for approval or understanding from others. Someone may disagree with you or not understand what you mean at all, so you need to think with your own head, which will lead you to success.”