The statistic that will change the way you look at your investment portfolio?
Warren Buffett is synonymous with success in the stock market, but the following statistic may surprise even the most experienced investors.
Of Buffett's net worth, currently estimated at approximately $151 billion, over 98% was generated after he reached the age of 65.
This means that most of the legendary wealth of the 'Oracle of Omaha' was accumulated precisely in the years when most people are already thinking about retirement.
'My life has been a product of compound interest,' Buffett said of himself, and the numbers prove this with mathematical precision.
An interesting point to consider is that since the year 2000, his investment performance has not consistently beaten the major indices.
Here lies the true secret to wealth accumulation: the excess returns built up early on are what created the necessary foundation.
When a solid capital base is built, even a return similar to market indices in later stages translates into enormous sums thanks to the compounding effect.
The real power lies not just in choosing the next stock, but in the ability to let time and mathematics work for capital over decades.