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by modeless 3566 days ago
To me the biggest anomaly here is the four year period from 1956 to 1960, 26 to 30, when Buffet octupled his net worth from $1M to $8M. Plenty of silicon valley engineers will have a net worth of $1M, but I think few make it to $8M. What was Buffet doing during those magical 4 years?
2 comments

Leverage is one big thing. Buffet is a money manager, so he takes outside money, and make money off of that. Most of Silicon Valley engineers won't do that. 1956 is when he started taking serious outside money.

Then there is early luck and talent.

http://www.valuewalk.com/2015/05/warren-buffett-partnership/

On the chart, the preceding few years have a very similar slope. One possible explanation is that he entered his 20s after all, and you might imagine that he started being taken more seriously in his business ventures when compared to the preceding period (i.e. it is possible the growth looks really huge when starting from a small base)