Beyond his savvy investments and witty one-liners, billionaire Warren Buffett is also famous for being one of the most philosophical figures in corporate America.
In a 2016 interview on *Bloomberg’s The David Rubenstein Show: Peer-to-Peer Conversations*, the Berkshire Hathaway chairman expressed little interest in actually spending the immense fortune he had accumulated over his career.
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“Money in terms of making trips or owning more houses or having a boat or something — it has no utility to me whatsoever,” said Buffett, who Forbes estimates is worth over $145 billion. “Money has no utility to me. Time has utility to me.”
Here’s why the legendary investor has his eye on the clock.
It’s easy to understand why a 94-year-old would reflect on the value of time. However, time has also played a key role in Buffett’s career. His investment in Berkshire Hathaway wasn’t an overnight success; it took decades for him to harness the power of compound interest fully.
In fact, 99% of Buffett’s current fortune was generated after his 50th birthday, and he didn’t reach billionaire status until he was 56. His longevity and continuous investment over more than six decades are key reasons his wealth outpaces most other professional investors.
“My life has been a product of compound interest,” Buffett told Rubenstein during his 2016 interview.
While no one can control how long they live, investors might take a page out of Buffett’s playbook by maximizing the time they stay invested. Starting early and staying in the market for extended periods may be the key to benefiting from compound growth.
Money lost on stocks can be recovered, but missing even a single year in the stock market could diminish your long-term returns more than expected. You can also use your money to reclaim some of your time.
Read more: Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead
Reclaiming time is perhaps one of the best ways to spend your money. According to a Harris Poll conducted on behalf of Fortune, 90% of Americans believe parents would be more likely to work and increase their income if child care were affordable. Many people see child care as a worthwhile investment to help boost their career and earning potential.
Similarly, data from the U.S. Bureau of Labor Statistics shows that women spend an average of 2.7 hours a day on household chores such as cooking and lawn care, while men spend 2.1 hours. Hiring a professional to help with these chores could be worthwhile if you and your partner have well-paid jobs.
Families might also invest in automation technology to save time. ChatGPT, for example, can be a helpful teaching aid for your children while robotic vacuums can eliminate the need to manually clean floors daily. According to a study by Oxford University, nearly 40% of unpaid housework and caring responsibilities could be automated with new technology within the next decade.
All this saved time could allow you to work more, boost your earnings or simply enjoy time with friends and family. Using your most precious resource — limited time — wisely should be a key ingredient in your financial plan.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.