Warren Buffett Got His Start With Only $9,800

Back When I Had $9,800 To My Name...

Take it from the world's greatest investor, Warren Buffett, you don't need much money to get rich.

Back in 1955, when the Oracle of Omaha was but a young thing, he only had $9,800 to his name. Today he is worth nearly than $40 billion. What's the secret to his success?

The thing is, when I got out of college, I had $9,800, but by the end of 1955, I was up to $127,000. I thought, I’ll go back to Omaha, take some college classes, and read a lot--I was going to retire! I figured we could live on $12,000 a year, and off my $127,000 asset base, I could easily make that. I told my wife, “Compound interest guarantees I’m going to get rich.”

It's worth repeating again: The secret to getting rich as an investor is the power of compound interest. And you don't even need $9,800 to get started.

A slew of new websites are aimed at making it easier than ever to get everyday investors into markets--without having to go through an investment advisor. With as little as $25, you can get started saving for long-term goals--like a down payment for a house or buying a new car.

A quick example to demonstrate the power of compound interest: A 25-year-old investing $500 per year until retirement at age 68 would earn $142,375 at a constant return rate of 7 percent.

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