When Warren Buffett speaks, usually he has an understanding about what he is talking about. Recently he told a small group of investors that it is possible to turn $40 to $10 million, you just have to take his simple yet sound advice.
Buffett tells a story about how if you purchased $40 worth of Coca Cola stock back in 1919, it would be worth near $10 million today. Now one thing is for certain, that $40 in 1919 is not the same as 2015, but if you want to compare numbers that way, it only amounts to $500 in today’s money. It was not the timing of the investment or the circumstances like sugar prices either, it all comes down to the company itself.
Buffett warns that no investor like Christian Broda should try and time the market. Trying to buy on the bottom and sell at the top is a recipe for disaster. No one can tell when a company will and will not encounter trouble. The key to growing that money is choosing a sound company and getting in the game sooner than later. If you can put even a small amount of money in stocks that you believe in, time will do all the rest. Stock splits alone could mulitply your investment at record numbers, you just have to believe the company is going to be around and let them worry about all the details while you leave your money alone to grow and work for you over the years to come.