[Music] Is this possible to turn $10,000 into millions? In a busy university library, Michael and Lisa were studying together. Lisa was worried. She thought real wealth uing only happened by learning complicated stock analysis and perfectly timing the market. Michael, on the other hand, was different. He had a calm and simple philosophy. Real sustainable wealth is not built on market speculation. It's built on silence and with belief. You don't need to be a market expert. You just must have a


simple belief and stay the course. >> There is so much money now in the hands of so many smart people all trying to outsmart one another and out promote one another and getting more money out of other people. >> Welcome to Business Upside. If you like our videos, give a thumbs up and subscribe to our channel. Today in this video, you will get to know how to turn $10,000 into millions. Warren Buffett once shared a principle for investing that stands the test of time. Essentially, you cannot really fail at


investing unless you pay attention to the market noise or you buy the wrong stock. Buffett believed that it was a serious mistake to only focus on what was going on today or even with each wiggle of the market. To help show that perspective, he many times referred back in time to one of those moments in his life. >> In 1920, 80 years ago, I took $114.75. Every penny I said, I bought three shares. >> The $38 investment that taught a lifetime lesson. On one of those spinned down moments, he often called out March


11th, 1942. 1942 when I bought my first stock was just buy an index fund and and and never look at a headline, never think about stocks anymore, just like you would do if you bought a farm. >> As one of his biggest lessons and the world was in total upset, daily headlines that day were filled with bad news of horrendous losses in the Pacific. The American public was paralyzed with fear and of course as the stock market had gone along with that panic, it collapsed dramatically. The Dow Jones Industrial Average had just


dropped below 100 on the very downside and he said that drop was over 500 points today. In fact, there was horrific news everywhere but there was a young Buffett just a boy who saw opportunity. He had asked his father to buy three shares of a stock named City Service Preferred >> since I bought my first stock and I paid $114.75 for three shares of City Service Preferred. He remembered that the stock had been at $84 just one year ago and during the chaos of the market downturn, it had dropped to $40. He said that on


March 11th, his father executed the trade and he paid the day's high only to see it fall even further by the end of the day. It was, he admitted, a difficult start and was a humbling example of his timing which he indicated had been about as poor as it could have been for a kid. However, he clarified this is not at all the point of this story. As it turned out, the stock skyrocketed over the 200 level per share. But a young Buffett concerned about the price fluctuations of the day and short-term volatility.


>> Four or 5 years, the stock market has been booming along and presumably forecasting better business, which is really not material. >> Sold his shares for a small profit just a few months after having purchased. He learned that the reality of investing is it's not how the price moves in the short term, but the long-term power of the American business machine for overwhelmingly compounding success. A simple idea that grew 10,000 into $51 million. To illustrate this important metaphoric principle, Buffett asked


people to imagine a different scenario. He said to imagine you invested $10,000 in a broad index fund which represented a market representation of American business on that same dark day in March 1942. He said investors just needed to buy and hold as you would do say with a farm or an apartment building. He noted that they would have to believe not only that America would win the war, but that it would also prosper and grow in the long run. Buffett said the investor wouldn't need reports, stock prices, or


experts, just faith in America's productive capacity. He then revealed that $10,000 would be worth more than $51 million today. This was all accomplished without any special difficulty or education. It was accomplished through persistence and a simple belief, the productive asset versus the non-productive asset. Buffett also emphasized the essential difference between owning a productive asset and owning a non-productive asset. He pointed out if that same $10,000 had purchased gold in March 1942, you would


have purchased approximately 300 ounces. For the next eight decades, while American businesses were reinvesting profits, new inventions and innovations were coming every year. The 300 ounces of gold would just be sitting there and not producing anything. He went on to say that today those 300 ounces of gold would be selling for approximately $400,000. Now that is a huge difference. For every dollar earned by the holder of American business, the holder of gold would earn less than a penny of gain. Schulz


explained that this illustrates the notion that a productive asset that generates income and reinvests in itself is infinitely more valuable over time than storage of value that generates nothing. Buffett's simple philosophy for life. Buffett ended by reiterating a central theme of his message. You do not need to be a hyperinformed active investor and trader to be successful. Rather, the first key is to own a cross-section of American business and invest reliably in that same investment over time. And


>> uh the best thing with stocks actually is to buy them consistently over time. uh you want to spread the risk as far as the uh the specific companies you're in by owning a diversified group and you diversify over time. >> He suggested that jumping in and out of stocks is a losing game. He reinforced that a lifetime of successful investing does not depend on knowing in advance what the future will hold when it comes to the Federal Reserve's actions, nor does it require understanding all of the


complicated and sometimes impenetrable accounting vocabulary. What drives success? he suggested is the understanding of an investment philosophy that you rely upon and have the discipline to follow. He further explained that the best tailwind an investor has is the American economy and that an investor's biggest weakness is not acknowledging it and allowing it to work through the steering wheel of their imagination. He concluded saying that what is most important is the conviction to consider investing your money in a


productive system. Then the rest is time and compounding. So, the next time you feel compelled to panic, sell or chase the latest news or trend, think about this. One $10,000 decision you made in 1942 amid one of the most challenging scenarios in human history would now be worth $51 million. And the exact same principle applies to you. So, what do you think of this video? Let us know in the comments section. Check out Business Upside for more such useful and interesting videos. See you in our next