Warren Buffett’s 1999 advice on how to invest $10,000 is still relevant today

Warren Buffett Photographer: Andrew Harrer/Bloomberg

As one of the world’s most successful investors, it comes as no surprise that Warren Buffett is often asked for investment advice. At the age of 91 today, the Berkshire Hathaway CEO has a net worth of over $100 billion and is someone people look to for investment and financial tips. The same held true in 1999 as well, when his net worth was a whopping $30 billion.

At the Berkshire Hathaway annual shareholders meeting in 1999, Warren Buffett was asked how to make $30 billion. His advice? Start early.

“Start early,” Buffett said, according to CNBC. “I started building this little snowball at the top of a very long hill. The trick to have a very long hill is either starting very young or living to be very old.”

Warren Buffett said that if had $10,000 to invest, he would probably put his money in smaller companies to invest strategically.

“I would probably would focus on smaller companies because I would be working with smaller sums and there’s more chance that something is overlooked in that arena,” he said. Buffett added that investors should rely on their own instincts while choosing a business to invest in and “act vigorously” when they do find a good investment opportunity.

The Berkshire Hathaway CEO has reiterated several times the importance of investing in a good business, as well as index funds. “The best investment, I think, is a good business,” he once said when asked about investing to combat inflation. “If you own an interest in a good business, you are very likely to maintain purchasing power no matter what happens to the currency.”