'The Snowball' by Alice Schroeder: Meditations On The Oracle Of Omaha
The Snowball, by Alice Schroeder

January 05, 2021

'The Snowball' by Alice Schroeder: Meditations On The Oracle Of Omaha

Can you imagine being a Stock Broker in 1929 during one of the largest stock market crashes in American history? Howard Buffett, Warren Buffett's dad, started working as a Stock Broker in 1927. Warren Buffett was born just ten months after the great stock market crash of October 29, 1929. He was the second child of Howard and Leila Buffett. Hard financial times and plunging stock (and dollar) values framed the background of Warren Buffett's entrance into the world...a world in which he was soon to dominate.

How To Pack A Snowball

Warren Buffett was a money vacuum. He lived his financial life by these three simple rules:

Rule number one, don’t lose money. Rule number two, don’t forget rule number one. Rule number three, don’t go into debt.The Snowball, pg. 543

The following table, (as derived from Alice Shroeder’s Book, ‘The Snowball’), gives some indication of how early in Buffett’s life he started amassing the staggering $86 Billion fortune he has today.

AgeYearDollar AmountToday's Value

So how did Warren Buffett make all of this money starting at such a young age?

Basically, he collected cash and invested it in stocks, and/or entire businesses, did a little arbitrage while also understanding, and leveraging, the power of compounding interest over the long-term. Easy-peasy.


To learn more about what I’ve learned from reading about Warren Buffet, have a listen to our podcast. You might also consider getting your own copy up Alice Shroeder’s book, ‘The Snowball’, and give it a read yourself. It’s well worth your time investment (the book, that is, not the podcast…).

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