Warren Buffett's $300,000 Haircut

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Warren Buffett's $300,000 Haircut
Investment Returns
Warren Buffet’s net worth is reported in the Wall Street Journal to be around $82 billion, thus making him one of the most successful investors in the world. Buffet revealed in the article that the success of investment has something to do with the compounded growth of money, which is usually underestimated by others. Although the article talks about a haircut, Buffet did not spend $300,000 to have his hair fixed but rather used it as an analogy to see how can money grow through time (Zweig). Let's say for example that a haircut cost around $60, which is very expensive for a regular haircut, it would take around 50 years with an interest rate of 18.58% that is compounded annually for the principal investment to reach $300,000. Buffet understood from an early age that the accumulation of wealth is not only dependent on the growth of money but also the time it grows.
Investment Risk
Buffet called his...