Why You Don’t Have To Be The Next Buffett To Build A Fortune
In 1957, Bill and Dr. Carol Angle were like any other husband and wife. They wondered about their financial future: making ends meet, retirement, etc.
The Angles heard about an investment class being taught by a bright 21 year-old kid. Rumor was, he impressed just about everyone he came in contact with. So, they decided to check it out. They joined about 20 other folks that night for the class, called “Investing Principles.”
What the Angles didn’t know was that this kid wasn’t just impressive. He was also a genius. As the story goes, by the end of the talk, Bill Angle announced to the crowd, “I’m putting $10,000 in. The rest of you should, too.”
Carol Angle was a believer, too. They would later up their contribution to $30,000 — half their life savings. It turned out to be the best decision they ever made. The Angle family is worth more than $300 million today.
There are dozens of families with a similar story. A 1998 article in Forbes mentioned that there at least 30 families in the local area, and many more elsewhere, worth at least $100 million.
All thanks to a young man who had to take a Dale Carnegie course on public speaking before he had enough confidence to get up in front a crowd.
By now, you can probably guess who I’m talking about.
Many already know the story of Berkshire Hathaway (NYSE: BRK-B). In 1962, Warren Buffett began buying the shares of a struggling textile company, which at the time was trading well below its book value.
Just five years later Buffett would buy the entire company, making it his crown jewel. By 1970, Buffett’s ventures funded by Berkshire’s company’s cash flow were blossoming, particularly in insurance. The insurance business offered Buffett something he dearly loved — loads of cash.
As you know, insurance companies collect premiums and hold them until presented with claims. In the meantime, it can invest that money — called the “float” — and earn a nice return. Buffett and Berkshire simply take the float and buy undervalued companies that generate even more cash.
You Don’t Have To “Get Lucky” To Build Wealth
If you know anything about Berkshire, then you know that Buffett’s record gains are near impossible to duplicate. That’s okay, because the truth is we don’t have to…
The point is, sometimes investors forget that it isn’t just Buffett who became rich from Berkshire Hathaway. The regular folks who invested with him amassed great wealth, too. And while I don’t claim to be the next Warren Buffett, the truth is that regular folks don’t have to hit the lottery by happening to meet the next Warren Buffett, either.
But my High-Yield Investing readers and I do have something in common with Buffett. We share a love of cash and compounding.
You see, many of our readers use the dividends generated by our portfolio to buy even more shares of our holdings. The result: dividend paychecks that grow with each passing month.
By reinvesting dividends in each one of these holdings, they’re able to create an income portfolio that’s grows with each passing year. When they’re ready, they can simply “flip the switch” to live off the income for retirement.
The truth is anyone can create lasting wealth in the market by using a “get rich slowly” approach like the one we use over at High-Yield Investing.
It’s not too late for you to get started, either. All it takes is a solid foundation. That’s why I just released a new report about five “bulletproof” income payers who have proven to be so strong, so reliable, and so generous… that they can be counted on, no matter what happens with the economy.
This group of stocks has the ability to serve as the bedrock of your portfolio. Each of them yields over 5% right now. They’ve all provided fantastic long-term returns, growing dividends (and their share prices) with each passing year. And I have little doubt that they’ll continue to do so for years to come.