Submitted by LeverageShares t3_108bg5r in dataisbeautiful
Comments
[deleted] t1_j3r645l wrote
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tomveiltomveil t1_j3r64ic wrote
The age axis is a mess. If you can't find data for every year, then you should space out the X axis so that there's a constant amount of progression from year to year.
holdenontoyoubooks t1_j3r7drc wrote
Yeah you’ve made a few blunders here in that the x axis isn’t nicely spaced, and the lack of log on the y axis gives no scale for doubling time
[deleted] t1_j3r8a52 wrote
Hopefully he dies soon before he can leech any more money from the rest of us.
Rest in piss.
PM_ME_A_PLANE_TICKET t1_j3r8c1l wrote
That graph looks strikingly similar to one of the wealth and income inequality in the US.
PM_ME_A_PLANE_TICKET t1_j3r8k0q wrote
Conversely, that's how ridiculously rich he is now that the difference between 26k and a million is invisible.
[deleted] t1_j3r8wb4 wrote
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Dombo1896 t1_j3r9ecp wrote
Even 376M is not visible.
Elbynerual t1_j3r9yon wrote
Fun reminder that he was gifted his initial starting money, which was almost the equivalent of almost 100,000 dollars today.
GigaFastTwin t1_j3rbf3w wrote
Hope for me yet, guy only had $19M at 44... Let’s gooooo!
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[deleted] t1_j3rezwn wrote
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SiFasEst t1_j3rf7xb wrote
Did you adjust for inflation? Because his $1M at 30 is probably more like $5-10M today.
SUPERSAMMICH6996 t1_j3rh3xj wrote
Damn... why are you so salty? At least Buffet is one of the few multi-billionaires who doesn't seem to have a shady past nor preys on others in order to make his gains. He is just a really gifted investor.
urgjotonlkec t1_j3riarg wrote
That doesn't match the data here..
urgjotonlkec t1_j3rifzk wrote
Or maybe just a very lucky one. There's a lot of studies that suggest no such thing as a "gifted investor" actually exists. Even Warren himself seems to largely endorse this belief.
LordFaquaad t1_j3rmuts wrote
No one lucks into 110 billion lol. There has to be some skill
LordFaquaad t1_j3rn5y9 wrote
Do you mean he had investing partners?
PGDunk t1_j3rnawe wrote
“He’s gifted in exploitation”
Lordborpo t1_j3rnpx3 wrote
Takes money. To make money.
Elbynerual t1_j3rnuai wrote
Oh? Where do you think the initial 5k came from? That's what I'm referring to. The data starts at 5k. And that was many decades ago, where current inflation makes it close to 1 million in today's money
EAS893 t1_j3rnw03 wrote
I don't think that's accurate.
His first fund started with something like 100k in around 1950 which is something like 1.2 million today, but it wasn't a "gift" it was assets under management he convinced investors to let him manage for them.
He definitely has a lot of privilege from his background. He's literally the son of a multiterm US House of Representative member and has attended multiple Ivy League Universities. He had connections to be able to find those investors that were mostly luck and circumstances of birth, and if you listen to any interviews with the guy you'll hear that he acknowledges this "ovarian lottery" as he calls it.
That said, with his returns, he still would have ended up wealthy even without those initial investors and just investing his own money, it just probably wouldn't be centibillionaire level wealthy.
Elbynerual t1_j3rnwo3 wrote
I believe it was his father iirc
Elbynerual t1_j3ro0lc wrote
I'm not referring to his first fund. I'm referring to his first money
EAS893 t1_j3royuu wrote
What money are you referencing? Do you just mean the fact that he had parents capable of taking care of him?
I'm asking, because having read a decent bit about this particular guy, I don't remember anything that stuck out to me in his life as a "windfall" of sorts like you're describing aside from just being born to a family with political connections.
It legitimately didn't seem like he had much handed to him that the average upper middle class person wouldn't have also had handed to them. There's privilege from being from that background for sure, but most upper middle class people don't become multi-billionaires.
positive_bias t1_j3rp7ml wrote
Based on average inflation rates, he was 14 in 1944/45, $5,000 in 1945 equates to about $83,000 in 2022. That’s a tad short of your $1 million claim.
urgjotonlkec t1_j3rp7w7 wrote
Not really. Let's say you go to Vegas with $10,000 and put it all on black at the roulette table. There's a roughly 50% chance you double your money and 50% chance you lose it all. Win 23 times in a row and you will almost 110 Billion. That sounds extreme unlikely, but if ever US adult did it you would expect to have made 20 people succeed. Ironically that's roughly the same order of magnitude of centi-billionaires in the US.
urgjotonlkec t1_j3rpjwr wrote
$83k and $1M are obviously quite different.
LordFaquaad t1_j3rpkdc wrote
Could you point to the source please, I've not heard this. I know his dad was a congressman but he passed away when buffett was 33. Far before he was a large investor
LordFaquaad t1_j3rqk9v wrote
The difference is that roulette is a game of chance and investing in good companies isn't. That's the entire thesis behind value investing which buffett followed. The luck he talks about is getting in at the right time and exiting at the right time.
Speculation happens in the market but the only people that really benefit are the HFT traders, hedge funds and quantfunds / banks due to the trade volume/ speed of transaction. The market isn't based so much on chance as people think especially if you have enough money to move the direction of the stock
urgjotonlkec t1_j3rs2vy wrote
In any efficient market winning and losing is 100% luck just like a casino. Obviously if you have enough money you can push people around in a way that an average investor can't, but even getting to that point takes a lot of luck.
mackinator3 t1_j3rt2kn wrote
No. It's time.
[deleted] t1_j3rth5i wrote
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Elbynerual t1_j3rtmtf wrote
Oh that's right, 100k is what I had read. Sorry, my mistake.
But yeah starting with 80k is a hell of a lot easier than starting at 0
Elbynerual t1_j3ru0o5 wrote
His initial money came from when he was a teenager i believe. Someone else responded to one of my comments and said it was when he was 14. He didn't start from nothing. He started with over 80,000 dollars in today's equivalent
WetHotPinkPanties t1_j3rxzrs wrote
Looks like that all the money that was printed literally went to him
[deleted] t1_j3ryq05 wrote
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LordFaquaad t1_j3rzfl8 wrote
Then invest in Lehman in 2000 and lmk how that investment turned out
LordFaquaad t1_j3rzq86 wrote
You're telling me that every major investor is just luck? It had nothing to do with skill, knowledge and understanding?
Also the efficient market states that prices are representative of assets. This is simply not true in the current market. The market isn't a casino that has priced in everything all thr time. The companies have Financials and based on those Financials and other factors, investors make decisions.
mackinator3 t1_j3s0doq wrote
You are arguing AGAINST luck right?
LordFaquaad t1_j3s0wgj wrote
80k isn't really alot of money in investing. It's the equivalent of a drop in the ocean. Also he did work during his teen years doing paper routes and other odd jobs. Compared to buffet, bozos, gates etc. Were given far more
urgjotonlkec t1_j3s198c wrote
>You're telling me that every major investor is just luck? It had nothing to do with skill, knowledge and understanding?
Yes, that's a pretty common school of thought supported by considerable research. For instance people have looked at the fund managers with the highest performance in given years and there's no correlation year to year.
Elbynerual t1_j3s1lqk wrote
If you game me 80k right now I'd never have to work again, and if I lived as long as him I'm certain I could be a billionaire
[deleted] t1_j3s2w1b wrote
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[deleted] t1_j3s4ryu wrote
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Z7-852 t1_j3s8gir wrote
It's just illustrate how ridecously large number hundred billion is.
ke7kto t1_j3s8zzy wrote
Maybe you don't know he's committed almost his entire fortune to philanthropy. I wish all the world's billionaires would commit to something like that.
LordFaquaad t1_j3sebho wrote
80k would last you 3 years max and that's if you live frugally. If you think growing 80k into billions is easy, please go to r/wsb and let me know how that goes.
PraetorianOfficial t1_j3skwmo wrote
You know what they always say, the first $100M is the hardest.
navywater t1_j3snmnd wrote
Heyyy I’m on track to be the next warren buffett
positive_bias t1_j3sz37w wrote
Still a little over 20% error margin with a $100k claim.
In the world of business capital, for a startup $80k is really not that much.
unklphoton t1_j3t3vh6 wrote
1 million seconds = 12 days. 1 billion seconds = 32 years.
Elbynerual t1_j3tb9p6 wrote
No thanks, I'm not a gambler
twisted_cistern t1_j3tfns1 wrote
I'm a house sitter and I've had customers offer to put their money under my management. It doesn't have to be family connections.
twisted_cistern t1_j3tgfq7 wrote
But if you're a teenager without expenses is quite a nice start.
My friend had a job during high school and invested it all. When he went to grad school he bought a house with a ton of bedrooms (in a historically polygamous town) and rented them to his classmates...
On the road to 10 billion the difference between starting at 80k and a million isn't that big.
twisted_cistern t1_j3tgxx4 wrote
I was too for about three months. It was pretty fun to be doubling my stock market account every three weeks.
jrm19941994 t1_j3tk1nd wrote
Lol if thats actually true you must be a hell of a trader, I would consider getting in touch with a prop firm
Elbynerual t1_j3tkwfn wrote
I didn't say anything about trading
navywater t1_j3tmks8 wrote
I wonder how he went from 26k at 26yo to 1mil at 30.
Biggest jump percentage wise
jrm19941994 t1_j3tssxn wrote
Then please explain what investment will allow you to retire on $80k of capital
djnack t1_j3tzo5v wrote
Ha! Was thinking the same.
andytdesigns1 t1_j3tzulz wrote
I wonder what perks rich man's heaven has? I'm sure our meaningless paper can buy some comfy clouds up there.
twisted_cistern t1_j3tzva1 wrote
If he was managing other people's wealth, he probably got a lot of wealth under management so his cut was that much bigger. It's not likely he got that return on his investments.
HopeFox t1_j3u45q6 wrote
So, neither the x-axis nor the y-axis is linear. The age values are spaced at apparently random intervals, and I'm looking at the difference between 620M and 1.4B, and the second bar does not look like it's 2.3 times the height of the first one. So this isn't really a "graph", just some pictures with numbers attached.
Besides, a logarithmic scale for the y-axis would be much more appropriate. Turning $1B into $2B is much more impressive than turning $10B into $11B.
jakmonk t1_j3u7xck wrote
This wealth isn’t coming out of thin air you know? It’s coming from wage theft, cheating out the government of taxes… etc.
1-PM t1_j3ubjul wrote
how the fuck was he worth 5k at 14
Dawashingtonian t1_j3uc52y wrote
$376 million and $5k are indistinguishable lmfao
longjaso t1_j3uhqcg wrote
The fuck is wrong with this graph? It just skips ages arbitrarily and randomly. I would prefer to see a graph that doesn't visually skew shit like this.
passed_turing_test t1_j3ukh58 wrote
You never forget your first billion
cubsbullsbearsz t1_j3urw8t wrote
26k to 1m from 26-30 is impressive. Any explanations
[deleted] t1_j3utdzt wrote
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DarkChanting t1_j3uugtw wrote
After having almost twice as much prior to that point, of course.
ELVEVERX t1_j3v1zt1 wrote
This is strange because 1.4B looks 6 times larger than 620m. Seems very inaccurate.
rug1998 t1_j3v40w0 wrote
43 to 44 quite the midlife crisis
Dombo1896 t1_j3v5ojg wrote
That‘s a very healthy gain of 2%. Per week.
Annually 149%.
rick_nek_vt t1_j3v61wn wrote
why such a weirdly scaled x-axis?
Lopatou_ovalil t1_j3v6bf0 wrote
more than me at 30....
[deleted] t1_j3v8gab wrote
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bunnnythor t1_j3v9ymg wrote
He got more money. Hope that helps.
-Radioface- t1_j3vgz1o wrote
Just wait till the Billionaires get ahold of gene therapy to prvent aging. Its already in the works.
duhvorced t1_j3vhdxx wrote
Aka “Scatter plot”
43morethings t1_j3vi9k8 wrote
Are the amounts from when he was young adjusted to account for inflation?
Dk1902 t1_j3vlbtn wrote
I did what I could:
The log scale shows a remarkably consistent rise in wealth between age 30 and 60, which becomes flat basically as soon as his wealth skyrockets here.
Dk1902 t1_j3vlfh4 wrote
No idea how many will see this, but I put together charts for log and inflation-adjusted numbers. The log is pretty interesting, as the log relationship flattens around age 60--as soon as it skyrockets in OP's chart:
elpajaroquemamais t1_j3vls7u wrote
Shows you how much a billion is huh?
ykliu t1_j3vns3q wrote
What did he do between 26 and 30?
DividedContinuity t1_j3vq5xl wrote
Working back for inflation you could probably buy a house with that.
Still, astounding gains, particularly that 26k to 1m jump in 4 years.
borkborkibork t1_j3vtvlh wrote
So you're saying there's still a chance I become billionaire?
Moosh90 t1_j3vye0t wrote
The scale is not the best
Rough_Molasses_9238 t1_j3vz4cj wrote
Not only that, how could a 14yo amass a total of 5k in the 1930’s!?
1945BestYear t1_j3vzllh wrote
This is part of the reason why it's a bad argument when someone accuses, say, a hollywood director, with a famous name and a big house in LA, of being hypocritical if they say something negative, either directly or in their work, about billionaires. Quintin Tarantino, who's on an extreme end in terms of success and wealth for Hollywood directors, has something like $120 million to his net worth, which means he's worth just below 1000x the median American of his age bracket (about $200,000) At the same time, Elon Musk at $144 billion is worth more than 1000 Tarantinos. If somebody thinks a person as wealthy or even a hundredth as wealthy as Tarantino is 'rich', that's fine, but they gotta see how one is just in a different magnitude to the other.
ThisGuyCrohns t1_j3w0u5k wrote
Because 1bn vs 110bn is so large it almost shrinks the 1bn
ThisGuyCrohns t1_j3w1710 wrote
I bet that was the stock market crash, I think in the 80s
ThisGuyCrohns t1_j3w1gcx wrote
We should have billionaires where we hope they do the right thing.
TimeZarg t1_j3w2vne wrote
Late 1956 to 1960. Benefited heavily from the Post-war boom I suspect, once you're hitting those kinds of numbers during that time it becomes harder to 'fail' because unless you massively fuck up on a big, risky venture the money can basically grow itself through stable, safe, lower-return investments.
TimeZarg t1_j3w3ikg wrote
In 1960, it would be 10 million equivalent.
[deleted] t1_j3w8fac wrote
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miclugo t1_j3w9khe wrote
I think that flattening might correspond to when Buffett seriously started giving away money.
[deleted] t1_j3x7uqd wrote
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Harasberg t1_j3y33nl wrote
That’s more an illustration of how big the number 1000 is. Still impactful though 😊
against_the_currents t1_j41xhdy wrote
“After being mentored by Benjamin Graham, his first investment firm as a professional was Buffett Partnership, Ltd that he created in 1956 at 26 years old. In 1961, after his partnership was worth millions, Buffett made his first $1 million investment in a windmill manufacturing company.”
Not pulled from this, but here is a nice timeline I just found https://www.cnbc.com/amp/2020/08/30/how-warren-buffett-made-billions-became-oracle-of-omaha.html
mynameismy111 t1_j45qacy wrote
100k adjusted for inflation at 15
He had influential family like congressmen so just pulled up by shoestrings as they all would say ....
Curtisg899 t1_j4j59a0 wrote
Keep crying buddy. Yes, everyone rich must have stole their money. They couldn’t possibly be smarter or more dedicated than you. See where it gets you
jakmonk t1_j4l71dn wrote
What you call dedication, I understand as greed. Dude already had enough money for 12 lifetimes at 56 years old.
Curtisg899 t1_j4lk518 wrote
What's greed about? He loves what he does so he continues to do so. His company provides lots of value to himself and to shareholders. He lives in a 500k house, he does it for fun not out of greed lol
jakmonk t1_j4o3d8s wrote
😂 bro stop I’m dying of laughter and I don’t have health insurance
bearposters t1_j5fh7lt wrote
What drove so much growth between 47 and 52?!
LeverageShares OP t1_j3r57oq wrote
Source:
Forbes
Dataviz.com
Tools Used:
Microsoft Excel
Adobe Illustrator