Building wealth is a function of amount invested, the rate
of return and time. Warren Buffett has ran Berkshire Hathaway
(NYSE: BRKA)
(NYSE: BRKB) for over fifty years. From
1964–2014 the
company’s class A stock returned 21.6% compounded annually. Here’s what $1,000
would have done with that rate of growth over time in the table below. It takes
investment genius to achieve this and this rate is definitely not guaranteed
and few people could probably achieve this.
$1,000 Amount

Time

Rate

Amount After Compounding

10 Years

21.6%

$7,068.64

20 Years

21.6%

$49,965.65

30 Years

21.6%

$353,189.06

40 Years

21.6%

$2,496,565.69

50 Years

21.6%

$17,647,319.43

A similar table to the one found above for different
compound growth rates can be found here:
William
Bias (stockdissector) owns shares in Berkshire Hathaway Class B