“Let me give you a figure that’ll blow your mind I think. I bought my first stock when I was 11 years old. It was the first quarter of 1942, shortly after Pearl Harbor,” Buffett recalls. “I spent $114.75, [for] shares [of a stock.] $114.75. If I put that $114 into the S&P 500 at that time and reinvested the dividends, think of a figure as to what it…would be worth today,” he asked me?
Let’s pick it up with Buffett again: “The answer is about $400,000. So if I as a little kid had taken that 114 bucks I’d saved— shoveling snow (LAUGH) or whatever I’d done, [I’d have] $400,000 today. [In] one person’s lifetime. That’s America. I mean, that isn’t me. You know, it’s the huge tailwind the American economy gives to any equity investor.”
This is his advice:
“Now, you don’t wanna buy to hold for a year, you don’t wanna buy with the idea that you could sell it in two years or three years necessarily, to make money. You may— you could lose money that way,” he says. “But if you buy it for $10, $20, just keep buying the S&P 500 index and forget about all the other nonsense that’s being sold to you because I’ll guarantee you one thing about (LAUGH) the stuff being sold to you, it will carry bigger fees than what (LAUGH) I’m talking about.”
By that last point Buffett means those big management or brokerage fees would eat up your returns in a huge way and you would end up with far less that $400K.
Read the full article @ https://sg.finance.yahoo.com/news/warren-buffett-says-couldve-turned-114-400000-230140222.html
My 2 cents:
Investment is not meant to be a quick way of earning money. Firstly, you must know what you are doing. If not, attend courses, either free or paid ones. Secondly, use your brain. Do not just listen to other people, including your remisier. You have to do your own homework. Do not follow blindly.