If you've turned 50 and don't have any savings, don't worry.
That's because if you can spare a little capital each month, you could still build significant wealth by following the lead of Warren Buffett.
During his time with Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), Buffett has shown that wealth can be created through very simple investment principles. And by applying his time-tested methods to investing in ASX shares, you could also pave the way to financial freedom.
Investing like Warren Buffett
If you can manage to invest $1,000 each month into ASX shares, then thanks to the power of compounding, you could build a sizeable investment portfolio by following Warren Buffett's investment strategy.
This includes investing in companies with sustainable competitive advantages (or moats), strong business models, positive long-term growth outlooks, and fair valuations.
It is worth noting that Warren Buffett emphasises fair valuations over cheap valuations. Sure, cheap would be ideal, but as he famously quipped:
Better to buy a wonderful business at a fair price than a fair business at a wonderful price.
Compounding our way to wealth
Let's assume you can generate an average annual return of 10%, which is in line with historical returns.
By investing $1,000 a month into quality ASX shares for 15 years, you would grow your portfolio to $400,000.
But you don't have to stop there. If you're able to keep going, then you would see your portfolio increase to approximately $725,000 after a further five years if you continued to achieve a 10% return.
And if you can keep this up for another five years, bringing your total investment timeframe to 25 years, your portfolio would have ballooned to almost $1.25 million.
All in all, this shows that by following Warren Buffett's investment style, it's never too late to start investing.
