Skip to content
Andrew Tobias
Andrew Tobias

Money and Other Subjects

  • Home
  • Books
  • Videos
  • Bio
  • Archives
  • Links
  • Me-Mail
Andrew Tobias
Andrew Tobias

Money and Other Subjects

If Only Methuselah Had Lived 100 More Years

April 30, 1999February 12, 2017

Blake Meyers: “I found your calculation of Bill Gates’ income since time began to be quite remarkable. [Click “Gates $$$ Clock” at left, and note that it was broken for a while because we forgot to account for the last split.] However, in discussing this with my officemate, we agreed that the real calculation should include compound interest. After all, Bill is savvy enough that he would put his money in an interest-bearing account, even if he was quite young when time began. Perhaps you could calculate how much he much he would have had to save each year, assuming a conservative rate of, say, 5%, to end up with the little pile of money that he has today?”

→ Good point. Though the investment choices billions of years ago — even 1,000 years ago — were quite limited. But the power of compounding never ceases to astound. (Me, anyway.) Do you know that if Bill had been born just 1,000 years ago, and if he had invested a mere one-billionth of one penny — not every year, just once — it would have grown by now, compounding at 5%, to $15 billion? Still not as much as he has today, but had he been able to bump the return up just a tiny bit, to 5.2%, he’d have over $100 billion.

This is why it pays to save when you’re young, even if you can’t count on living 1,000 years. (Neither, I think, should everyone NOT count on it — technology is racing along.) And it is also why the 20% and 30% annual returns people have come to expect from stocks . . . or in some cases 20% a month these days. . . are wholly aberrational and perhaps even a little worrisome. Five percent, let alone a mighty 5.2%, only seem low.

 

Post navigation

← More Reader Mail: Gift Certificates and E*Trade
Quickbrowse Even Better! →

Quote of the Day

"The Beardstown Ladies’ Common-Sense Investment Guide. A classic from the investment club that has outperformed Wall Street gurus three to one. ("It’s easy to get investment advice these days. But in this volatile market"

American Bookseller\'s December 1997 list of recommended investment books.

Subscribe

 Advice

The Only Investment Guide You'll Ever Need

"So full of tips and angles that only a booby or a billionaire could not benefit." -- The New York Times

Help

MYM Emergency?

Too Much Junk?

Tax Questions?

Ask Less

Recent Posts

  • James Comey + Taylor Swift

    August 19, 2025
  • Getting By On $100 Million -- And The Pando Plan

    August 18, 2025
  • Putin Is Winning

    August 17, 2025
  • I Have Your Weekend All Planned Out For You

    August 14, 2025
  • Tough On Crime (Unless She Worked With Jeffrey Epstein Or Stormed The Capitol)

    August 13, 2025
  • Bully . . . Bedlam

    August 12, 2025
  • Bankrupting Yet Another Enterprise; Threatening Your Life

    August 11, 2025
  • Don't Miss Today's Last Item: What A Soft Coup Looks Like

    August 8, 2025
  • The Mozart Of Math

    August 7, 2025
  • A Few Words About Death

    August 6, 2025
Andrew Tobias Books
  • Facebook
  • Twitter
©2025 Andrew Tobias - All Rights Reserved | Website: Whirled Pixels | Author Photo: Tony Adams