# How could Warren Buffett make 99% of his fortune after age 50? [Solved!]

**Ana** 28 Jan 2016, 12:03

### My question

How is it possible he increased his wealth when most people are thinking about retiring?

### Relevant page

From $6,000 to $67 billion: Warren Buffett’s wealth through the ages - MarketWatch

### What I've done so far

I was wondering what Buffett did to make so much money, and why most of it was made after age 50.

X

How is it possible he increased his wealth when most people are thinking about retiring?

Relevant page
<a href="http://www.marketwatch.com/story/from-6000-to-67-billion-warren-buffetts-wealth-through-the-ages-2015-08-17">From $6,000 to $67 billion: Warren Buffett’s wealth through the ages - MarketWatch</a>
What I've done so far
I was wondering what Buffett did to make so much money, and why most of it was made after age 50.

## Re: How could Warren Buffett make 99% of his fortune after age 50?

**Murray** 28 Jan 2016, 14:54

Ana: A big part of this is the power of compounding. If you have more money than debt, then you can grow that money.

As long as it the growth stays ahead of inflation, you'll build up wealth slowly at first, then it just increases more and more (an exponentially increasing amount).

Trying drawing this graph, which represents a growth rate of 5% per year if you start with $1000: `A=1000(1.05)^t`

X

Ana: A big part of this is the power of compounding. If you have more money than debt, then you can grow that money.
As long as it the growth stays ahead of inflation, you'll build up wealth slowly at first, then it just increases more and more (an exponentially increasing amount).
Trying drawing this graph, which represents a growth rate of 5% per year if you start with $1000: `A=1000(1.05)^t`

X

Is this it?
[graph]310,250;-15,80;-1200,50000,10,10000;1000(1.05)^t,[/graph]

## Re: How could Warren Buffett make 99% of his fortune after age 50?

**Murray** 29 Jan 2016, 02:07

Yes, that's it. Well done.

You can see that it was worth $10,000 at age 50 (10 times more) and then $50,000 (50 time more) 30 years later.

The power of compounding!

Of course, he's got better as he went along, and his growth rate of wealth is quite something.

X

Yes, that's it. Well done.
You can see that it was worth $10,000 at age 50 (10 times more) and then $50,000 (50 time more) 30 years later.
The power of compounding!
Of course, he's got better as he went along, and his growth rate of wealth is quite something.

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