Warren Buffett, widely regarded as one of the most successful investors in history, often shares timeless advice for accumulating wealth. One of his favorite metaphors, inspired by his business partner Charlie Munger, is the “snowball” analogy.
At the 1999 Berkshire Hathaway Annual Meeting, Buffett emphasized the importance of starting early. “Charlie’s always said the big thing is we started building this little snowball on top of a very long hill,” he explained. The metaphor highlights how compound interest works like a snowball rolling downhill, growing larger as it picks up more snow.
“The trick,” Buffett said, “is to have a very long hill.” This means beginning to invest at a young age or living long enough to let compounding do its work. In essence, patience, consistency, and time are the keys to growing your financial “snowball.”
Buffett’s advice underscores the power of compound interest and the importance of a long-term perspective in building lasting wealth.
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© 2025 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.