Buffett's Late Wealth Explosion

Morgan Housel shares a story about Warren Buffett's wealth accumulation to demonstrate the power of long-term compounding.

"Obviously he is a great investor, but the whole secret - what's literally 99% of his wealth - is that he's been a great investor for 80 years. That's why he started investing when he was 11 and he's 93 today, still going as hard as ever. That's where all the money comes from.

His average returns are 20% per year, which is phenomenal of course. But if you earn 20% per year for 20 years, it's really good. You earn 20% a year for 40 years, it's great. You earn 20% a year for 80 years, you're worth $100 billion. That's where all the returns come from."