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Warren Buffett's Legendary Returns: Lessons for Every Investor

Olu Olu
Dec 5, 2025
2 min read

According to some public records, Warren Buffett's Berkshire Hathaway achieved a 19.9% compound annual growth rate (CAGR) from 1965 to 2024, nearly doubling the S&P 500's 10.4% over the same 60 years. This performance turned a $10 investment in 1965 into millions today, as detailed in Berkshire's official annual letters.

The Possibility Of Late Wealth Accumulation

Buffett amassed roughly 97% of his net worth after age 65, with estimates around 95-98% of his current $160 billion fortune built post-65 through compounding. At 65 in 1990, his wealth stood near $3 billion; it has since grown over 5,000% via Berkshire's sustained returns. This goes on to show that time has been an important element in Warren Buffett's wealth in addition to the fact that he started early.

Key Lessons Everyone Can Apply

Buffett's success stems from timeless principles accessible to average investors, drawn from his shareholder letters and philosophy.

Harness compounding through patience: Reinvest earnings consistently; Buffett stresses short-term volatility fades while long-term growth snowballs, as seen in Berkshire's no-dividend policy since 1967.
Buy quality businesses you understand: Focus on companies with durable competitive advantages (moats), consistent earnings, and capable management. In other words, stay in your "circle of competence."
Demand a margin of safety: Purchase assets below intrinsic value to buffer errors; avoid speculation or complexity.
Index for simplicity: For most, low-cost S&P 500 funds outperform pros via steady market exposure and this is Buffett's core advice for non-experts.
Ignore market noise: Hold through swings; Berkshire beat the S&P in 40 of 60 years by focusing on business value, not prices.

These strategies require discipline over genius, proving ordinary investors can build wealth by emulating Buffett's focus on time, quality, and rationality.

Reach out to review your current wealth accumulation & tax savings strategy to ensure financial sustainability and security. You can also read some related blogs on financial planning, managing finance and canadian financial realities.