Renowned author Morgan Housel believes that if legendary investor Warren Buffett were 40 years old today, he would still do well, but not nearly as well as he did in the past.
“When (Buffett) made most of his money in percentage terms, around the 1960s and 1970s, he was buying blue-chip companies for two times earnings. That doesn't exist anymore. If he were born 20 years later, he would not have had the career that he had,” he said.
Housel is the author of New York Times' Bestseller 'The Psychology of Money,' and 'Same As Ever'. His books have sold over eight million copies and have been translated into more than 60 languages.
Talking to Prashant Nair of CNBC-TV18 during a session on “The Psychology Of Investing” at the Moneycontrol Global Wealth Summit 2025 in Mumbai, Housel said that Buffett was a product of when he was born.
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Buffett is an American investor, business magnate, and philanthropist, widely regarded as one of the greatest investors of all time. He is the chairman and CEO of Berkshire Hathaway, a multinational conglomerate.
Weighing in on the debate on luck versus skill in investing, Housel gave another example of Bill Gross an American investor and fund manager, best known as the co-founder of PIMCO (Pacific Investment Management Company).
“During the last 20 or 30 years, Bill Gross was known as the greatest bond fund manager to ever live. He was known as the bond king. In an interview a couple years ago, he said that his career started when interest rates were at an all-time high and ended when interest rates were at an all-time low. As a bond fund manager, he said that it does not get any better than that. He also said in the interview, that if he had been born 10 years earlier or 10 years later, he would not have had the same career,” said Housel.
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As per the renowned author, nobody wants to admit that they got lucky. “It's just that if I were born in a different country or a different generation, I would have a very different life and so would all of you. Sometimes that difference would be better, sometimes it would be worse. So, everyone wants to think that their successes were due to their hard work and genius, and any of their failures were just due to poor luck,” he said.
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