Thankfully, it is never too late to start building wealth, even if you find yourself at 50 with little to no savings.
One of the most famous investors of our time, Warren Buffett from Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), has demonstrated that significant wealth can be created through very simple investment principles. And by applying his time-tested methods to investing in ASX shares, you could pave the way to financial freedom.
Starting your journey at 50
Assuming you have no current savings but can manage to invest $1,000 each month into ASX shares, the power of compounding could work wonders for your financial future if you follow Warren Buffett's investment strategy.
This includes investing in companies with sustainable competitive advantages, strong business models, positive outlooks, and fair valuations.
So, let's assume an annual return of 9%, which is actually below the 30-year average for ASX shares, and see what could happen over different timeframes.
15 years investing like Warren Buffett
Over a 15-year horizon, regularly investing $1,000 per month into ASX shares at a 9% annual return could deliver impressive results.
After 15 years, your investments could have grown to just over $370,000. That's an impressive figure for someone who began with no savings and illustrates the power of staying invested and remaining committed to the plan.
In 20 years
If you keep going through to the 20-year mark, you will see just what a difference compounding can make to your wealth.
An additional five years of investing like Warren Buffett earning the same return would take the value of your portfolio to approximately $640,000.
25 years of investing
The true power of Warren Buffett's investment approach becomes evident over a 25-year period. By sticking to your $1,000 monthly investments in ASX shares, the magic of compounding could transform your portfolio to just over $1,050,000. This means you will have reached millionaire status, all thanks to the principles espoused by the Oracle of Omaha.
Overall, if you find yourself at 50 with no savings, don't lose hope. By adopting Warren Buffett's patient and steady investment approach with ASX shares, you can still achieve significant wealth accumulation.
