Discover Warren Buffett’s 2 Wealth-Building Habits and How Compound Interest Amplified His Success

Warren Buffett often downplays the idea that his wealth is the product of extraordinary genius alone. Instead, the “Oracle of Omaha”—who officially stepped down as chief executive officer of Berkshire Hathaway on Jan. 1—points to three forces that shaped his financial life: living in America, being born with what he calls “lucky genes,” and letting compound interest work uninterrupted for decades.

In his Pledge letter to The Giving Pledge, Buffett elaborates, explaining that these structural advantages—not just investment skill—formed the foundation for his fortune. Understanding what he means can offer valuable lessons for anyone trying to build long-term wealth.

Living in America

Buffett has emphasized that simply being born in the United States played a significant role in his success.

In his Pledge letter, he noted that, “My wealth has come from a combination of living in America, some lucky genes, and compound interest.”

He highlighted that the U.S. “market system,” despite ups and downs, serves America well and allows for wealth accumulation over time.

Buffett also acknowledged the advantages of his particular place and time: “My being male and white also removed huge obstacles that a majority of Americans then faced.”

He is direct about the fact that he benefited from structural conditions that enabled—not hindered—his opportunities.

Lucky Genes

Buffett describes himself as a winner of what he calls “the ovarian lottery.”

In the same letter, he writes, “Both my children and I won what I call the ovarian lottery. For starters, the odds against my 1930 birth taking place in the U.S. were at least 30 to 1.”

Indeed, talent alone doesn’t guarantee success—being lucky enough to be born with good genes, and in a place and era where your talent can flourish, can make an enormous difference. Buffett’s acknowledgment reiterates that financial outcomes are partially shaped by circumstances outside your own control.

Compound Interest

While opportunity and circumstance opened doors, Buffett says that time and compound interest ultimately played the most vital roles in multiplying his wealth. He began investing at age 11, which provided many decades for his returns to generate additional returns.

Here’s an illustration of the power of compounding: Buffett earned more than 99% of his net worth after age 50, which highlights how exponential growth accelerates late in an investor’s timeline. His approach—steady investing, limited interruptions, and a long horizon—is one of the most dramatic demonstrations of compounding’s power in modern financial history.

The Bottom Line

Warren Buffett’s reflections show that wealth accumulation is shaped by both opportunity and long-term discipline. He credits living in America, being born into advantageous circumstances with “lucky genes,” and allowing compound interest to work over many decades as the core forces behind his success.

While not all factors can be replicated, anyone can adopt the most practical lesson: start early, stay invested, and let time do the heavy lifting.