Warren Buffett: Why $100k is the MAGIC Number to Getting Rich (Life Changing Advice)

Listen closely because I’m about to let you in on the secret to getting rich. If you just clicked on this video, it’s fair to say that you want to one day become a millionaire. But, what if I told you that the hardest part of becoming a millionaire isn’t hitting that elusive 1 million dollar mark. The hardest part is actually getting to your first 100,000. As you are about to see, once you hit this magical number, a lot of the hard work has already been done.

But please don’t take my word for it. This is coming from legendary investor Warren Buffett. And, let’s just say, our friend Warren here knows a thing or two about getting rich. Make sure to stick around to the very end of this video because I have a special treat for you guys that I know you will like. Let’s get into the video.

If I were to ask someone what the single most powerful tool in the world is when it comes to getting rich, what do you think they would say? A few things that come to mind may include having a high paying job, being able to pick winning stocks, (laugh when saying this) or even heck, coming from a rich family? While all of these things are important, they pale in comparison to the single most powerful force when it comes to getting incredibly rich… That force is what is referred to as “compound interest”. Truly understanding and utilizing the power of compound interest can mean the difference between becoming incredibly wealthy or living paycheck to paycheck your entire life. You are about to see exactly why in this video. Buffett has been known to say that “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it”. Listen to Buffett talk about how compound interest built his fortune.

Once you hit the 100,000 dollar mark, the wonders of compound interest start to work their magic.To demonstrate just how powerful Compound Interest can be, here’s a quick story for you. Meet the characters in our story: William and Richard. Nearly everything about William and Richard is the exact same. Both are the same age, work in the same field, and even make the exact same amount of money. However, there is one big difference between these two guys. This difference may seem inconsequential at first. But, as you are about to see, this seemingly small detail is going to make all the difference.

[hildacook]

My portfolio for the past 30 years has always been self managed and I own 3 shares of Berkshire Hathaway Class A stock (BRK:A) which I bought in at about $17, 000 during the mid 90s, I’m currently liquidating some of these positions to incoporate new Gen. Stocks, but am I better off re-investing into Gold as it seems stocks are a little too unstable right now.

[DonaldMark-nese]

These are very valuable rules for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the principles. We may not want to admit, but as Warren Buffett once said, investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I have about $89k now to put in the market.

[roberttheodoregeorge]

I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024

[ArashHildeman]

I lost over $75k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Charlotte Miller.

[smileyspoon]

This is totally true. My investments was at 100k mark about 4 years ago? I'm at 320k now. Networth at 930k. So close! Except I think with the 10 - 2 yield poised to unwind and I think there will be a recession soon. Maybe I'll see my networth him 1m soon and go down 30 percent for a bit.😂😂😂😂😂 that's okay... I'll just invest more at a discount. Also as a tidbit compounding works on knowledge as well.

[brandBull-wfgo]

I really appreciate the dedication in each video you post. To be successful one has to have multiple income streams and so on, also investors should understand the crossover between asset classes & liquidity flow, Judith Layton focuses on Multi-asset trading, a single strategy to manage risk, profit, and the code or the actual decision-making across multi-asset classes. Her skills set is top notch

[Matraka]

Do not buy things that you do not need, invest in you(education) and save as much as you can. I started already the $100, 000, however, I am not being paid 10% but 7.5% annually but taxes10%. But it works.

[METALADIX]

Funny how the more money you have the easier it is to make it. Get rich enough and interest alone can keep you living comfortable.

[ziqcrcv]

Years and years up and down and hard work Lord Bless me and my family .😊

[alex-yjgd]

Should 200k be the goal now with the current inflationary environment?

[cagu]

and where do you get consistent 10% rate per year ?

[nguyenquochuy]

thanks for your effort, indeed I see this video twice, and still dont fully understand what is the relevance between importance of 1st 100k and example you give out about Richard and William? The take from their story is who get longer run will have longer time for compounding and eventually better results, if 2 person start with a base let's say 20k, the proportional difference between them assuming same return and same period, will also be the same. Why there is a number of 100k here? Or maybe I miss sth?

[lakepoet]

He is talking about 100k in his (Buffets) young adult days so 1960-1970, inflation adjusted that number is closer to 800k

[appleztooranges]

I hit $100k in my 457b and it drops and goes up. Doesn’t seem to move much now

[charlesweaver]

The first $100k was a lot easier than going from $100k to $1million I don’t know why people say this.

[Bhavesh_verma]

I've reached 72k$ at the age 24, 28 more to go and I might touch 100k$ by the end of this year as I'm all invested in India's fastest growing economy. After that I'll open a whiskey and declare my retirement

[mgallegos]

Where can you earn 10% actual yield, not average rate of return? Hypothetical numbers are nice but it’s not real.

[snwbm]

The first $100, 000 is nothing. He had more than that in compounding holds true, but the amount has changed. You need atleast $2, 000, 000

[brpesa]

Ok, I have $100k, what should i do now ?

[roberttamm]

Great video. But over 27 years, $4.5M has a purchasing power of $1.66M assuming an average rate of inflation of 2.7%. $1.66M is nothing to sneeze at, but it isn't "FU" money so to speak.