Warren Buffett: How to Generate 50% Returns with Small Amounts of Money (Recent Interview)

Warren Buffett talks about how to invest small sums of money and generate 50% annual returns. Everything you have ever learned about money is wrong and you are about to find out why in this video. You see, there is an old saying that it “takes money to make money”. Meaning that if you want to generate attractive investment returns, you first have to be sitting on a large amount of money. As you are about to hear from Warren Buffett, this isn’t actually the case. In fact, when it comes to generating high investment returns, it can actually be a huge advantage to be starting out with relatively small sums of money. Take a listen to what Buffett had to say when asked how he would generate 50% returns if he was starting out again with a small amount of money.

There are 3 incredibly important principles from Warren Buffett that you absolutely must follow if you want to generate high returns with small amounts of money. We are going to jump into that list shortly, but first, some quick background on Warren Buffett to put his comments from the clip into context. Buffett is the CEO of Berkshire Hathaway, a conglomerate with a market value of a staggering 900 billion dollars as of the making of this video. When it comes to investing, bigger is not always better. As a portfolio, or business in the case of Berkshire, gets larger, so does the dollar amount of an investment that is able to truly “move the needle” as Buffett likes to put it. For the sake of argument, let’s say an investment needs to be 5% of the current value of Berkshire in order for it to be large enough to make a difference. 5% of 900 billion comes out to 45 billion dollars.

To put that 45 billion dollar number into perspective, take a look at some well known companies with market caps of around that size. There is the clothing brand, Adidas. Food company Kraft Heinz, owner of namesake brands Kraft and Heinz as well as Oscar Meyer, Kool Aid, Lunchables, and Jello. There’s also the car manufacturer Hyundai, a company that generated 121 billion dollars in revenue in 2023. All of these companies are massive, with their each and every move closely scrutinized by professional investors. Given how well followed these companies are, it is highly unlikely that their stocks will ever be extremely undervalued.

[patrickjones]

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.

[ellaaysun]

I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 53 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 56 yo and have put $9, 000 in an IRA and $40, 000 in my portfolio with CFA, Abby Joseph Cohen. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, I was able to scale this quickly to $150, 000. If I can do this in a year, anyone can.

[yoziwuf]

You definitely have my sub. This content is next level. For me Unimantic was the turning point. Please keep doing what you do and keep being you, love it.

[greekbarrios]

I'm very grateful for the video. Everyone needs to be financially independent. Please use this thread as a resource for anyone who has built wealth to share a more straightforward, replicable strategy. To get started, I have $190, 000 saved up.

[shivakandukuri]

Sir Ronal’ has offered profits to investors who wish to recover losses including myself and it’s a great honor to be part of them 🥳

[bablugoswami]

Honestly, I don't understand why you're discussing these dubious schemes. There are plenty of options like Unimantic and similar ones that are fast and profitable.

[SaadmaanShohid]

I lost over $80k 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.

[matthewlandings]

50% per year every year seems unrealistic to me, but If one is happy with 30% is sufficient to stick to value investing strategies like the Everest Formula.

[nomercadies]

Well, that sounds like work instead of just getting rich quick! Go figure.

[WhitneyRoss-djrf]

With around $250k to invest, what's your advice on entering the market? I'm considering replicating the strategies of experts instead of investing independently to avoid both financial losses and emotional stress. What are your thoughts on this approach?

[amrutlalbariya]

Thank you for your research. I find your videos are well done. Right now I'm keeping an eye on Unimantic.

[Muriel-]

It sounds tempting, but aiming for super high returns with a small amount of money can be risky. You might end up losing everything you invested.

[shawnpatrick]

Everything I've been told about money is wrong?
Really?
Everything?

[ButterpOsse]

SIGNED,

THE OTHER BRONX BOMBERS!

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[MG_Stock_Analysis]

It’s not as hard as people think if you know what you are doing but you need the right temperament. I’ve been achieving average annual returns of 40–50%, primarily by buying fast growing small-cap companies at highly undervalued prices and selling them once they are priced fairly or overvalued.

[kerrytoby]

Most will never have enough cash to invest to get there. The concepts are great . The risks are great too when one needs most of their money to live daily. With discipline it will take 40 years. Someone with enough money or years of building can make it sound easy.

[MrPinoCavallo]

I would like to know how Buffett got through his 20, 000 pages of the Moody's Manual. Of course, he didn't do a thorough value analysis, but he must have used 2 or 3 KPIs to identify the companies he would take for a deeper analysis. Does anybody know which KPIs he used?

[sl-poup]

Hmm, why wasn't this channel around 25 years ago? Why didn't you tell me this back then ? 😂

[jimveybe]

A million in cash is NOT a small amount of money. 99% of Americans will never have access to that opportunity.

[Andygb]

Who would've thought that Kraft Heinz would be the owners of the brands Kraft and Heinz.