Warren Buffett's 98% Wealth Gained After 65, Emphasizes Patience

Warren Buffett, the celebrated investor and CEO of Berkshire Hathaway, is renowned for his exceptional stock-picking abilities. A key factor in his success, according to billionaire investor Terry Smith, is Buffett's willingness to change his mind. Unlike conventional borrowing, Berkshire Hathaway leveraged insurance float to amplify Buffett's stock-picking acumen. This strategy allowed Buffett to deploy capital more effectively, contributing to his impressive track record.

Buffett's approach to investing is characterized by patience and a long-term perspective. A significant portion of his wealth, approximately 98%, was accumulated after he turned 65. This underscores the power of compound interest and the benefits of a patient, disciplined investment strategy. Buffett's success is not merely a result of genius-level stock picking but also a testament to the power of time and consistent investment.

Christopher Ruane, an investor who has followed Buffett's wisdom, has used this approach to navigate uncertain stock markets. By focusing on long-term investments and avoiding short-term market noise, Ruane has been able to maintain a steady course in his investment strategy. This method aligns with Buffett's philosophy of investing in companies that can be thoroughly evaluated and avoiding those that are beyond one's understanding.

Buffett's investment philosophy is rooted in humility and a deep understanding of the businesses he invests in. He advises investors to acknowledge what they do not know and to avoid investing in businesses they cannot evaluate. This approach has served him well, as he has consistently put Berkshire Hathaway's capital to work through a diversified investment portfolio.

Despite his age and the realization that he has slowed down, Buffett remains committed to his investment principles. He has openly discussed his plans to step down from his role at Berkshire Hathaway, but his legacy of disciplined, patient investing will continue to influence future generations of investors. Buffett's ability to adapt and change his mind when necessary has been a crucial factor in his enduring success.