If you're sitting on near-zero savings, it can feel like the share market and wealth building are out of reach.
But legendary investor Warren Buffett has shown time and again that you don't need to start big to end up wealthy. His golden method for investing has been the same for decades — focus on quality, consistency, and compounding.
Warren Buffett's golden method
Warren Buffett built his fortune by buying high-quality businesses, holding them through thick and thin, and letting time do the heavy lifting. This isn't about chasing the hottest stock or timing the market. It is about patience.
While Buffett has made mistakes, his standout winners all share common traits — durability, strong cash flow, and competitive advantages.
Take Coca-Cola (NYSE: KO). Buffett first bought in the 1980s and still holds billions worth today. It is a global brand with reliable demand and dividends.
Or look at Apple (NASDAQ: AAPL). Despite being a tech stock, it fits Buffett's mould perfectly. It has dominant products, loyal customers, and immense pricing power.
Another classic is American Express (NYSE: AXP). Warren Buffett snapped it up decades ago when others doubted it. Today, it remains a cornerstone of his portfolio thanks to its wide moat in financial services.
Each of these picks shows that Buffett looks beyond the short-term noise. He buys businesses that can compound value over decades.
Easy investing
Don't worry if you don't have time to find picks like the above.
That's because Buffett has long championed the idea of just buying an index fund for easy investing.
For Australian investors, the iShares S&P 500 ETF (ASX: IVV) could be the answer.
This ASX ETF tracks the S&P 500 index, giving you exposure to 500 of America's best stocks — many of the exact types of businesses Buffett has favoured throughout his career.
To put the power of compounding in perspective, investing just $250 a month into the iShares S&P 500 ETF with an average 10% annual return could grow to around $180,000 in 20 years. Stick with it for 30 years and it could swell to nearly $520,000. Starting small today could transform your financial future.
Foolish takeaway
Buffett's golden method is simple: invest in quality stocks, reinvest consistently, and give your money time to grow.
Even if you're starting from scratch today, a disciplined approach could put you on the path to serious wealth over the long run.
