'It gave me a big advantage': Warren Buffett and Bill Gates were asked to give the secret to their success in 1 word. They both gave the exact same answer

In his case, the activity Gates was obsessed with was coding — which worked out pretty well. Gates went on to co-found Microsoft and became a millionaire in his 20s. He’s now the seventh wealthiest person on the planet, according to the Forbes real-time billionaires index, with a net worth of around $111 billion.

When Buffett was interviewed shortly after by CNBC, he was asked what he was obsessed with as a teenager.

“Well, I was pretty interested in investments,” he said.

When he was just 11 years old in 1942, Buffett says he took $114.75, his life savings at the time, and made his first investment, buying three shares of oil and gas company Cities Service (now called Citgo).

Fortune has since smiled on Buffett, who is now known as one of the most successful investors of all time. Aged 92, he still runs multinational conglomerate Berkshire Hathaway, which owns dozens of giant brands, including insurer Geico, battery maker Duracell and restaurant chain Dairy Queen. He ranks fifth on the Forbes real-time billionaires index with a net worth of around $120 billion.

Buffett recounted a story to CNBC about Gates’s father gathering a group of men many years ago and asking them to write down on a sheet of paper one word that accounted for their success. The two men wrote down the same thing without either knowing the other one’s answer ahead of time.

“He was focused on software, I was focused on investments,” Buffett said. “And it gave me a big advantage to start very young — there’s no question about it.”

If you’re keen to follow the billionaires’ advice but you’re long past your teenage years, fear not — here are three ways to focus your investing strategy to emulate some of Buffett and Gates’s wealth-building success.

Start early and stay focused

The earlier you can start investing, the better off you’ll be. That’s probably the most common piece of investing advice — and it’s something that Buffett and Gates both stand by.

Buffett once described earning compound interest — an interest you earn based on your personal contributions and the interest you've already earned — as the ability to snowball your wealth.

“We started building this little snowball on top of a very long hill,” he said at Berkshire Hathaway's annual shareholders meeting in 1999. “The trick is to have a very long hill, either start very young or live to be very old.”

There are many ways to start investing. You can invest in stocks or index funds through a traditional brokerage account, or you can use tax-friendly investment vehicles like a 401(k) account (if your employer offers one) or an individual retirement account (IRA).

Once you start investing, it’s important to stay focused. It's possible to put your money to work every single day, for example, if you invest your spare change. And remember, the more time you have to earn interest, the bigger the rewards you'll see.

Focus on quality and value

Buffett is a well-known proponent of value investing, which is a strategy that involves buying stocks that are trading below their intrinsic value.

Typically, he looks for companies with long-lasting earning potential, consistent earnings, good cash flow and a low amount of debt.

He also likes to hold high-quality stocks for a long time — as shown via long-term investments in blue-chip companies like American Express and Coca-Cola — and famously wrote in his 1996 letter to shareholders: “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”

While the investing juggernaut has been preaching the notion of value investing for many years, he reiterated it in Berkshire Hathaway’s annual shareholder letter published in February 2023, where he wrote that the company’s investing goal was to back “businesses with both long-lasting favorable characteristics and trustworthy managers.”