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

"If the Bank runs out of Money, it may issue as much Money of its own as it may need by merely writing on any ordinary paper."

The Rules of Monopoly, Parker Brothers, Inc.

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

  • 5 Links And A Joke Walk Into A Bar

    July 8, 2025
  • There WAS No Cherry Tree

    July 7, 2025
  • "The Most Popular Bill Ever Signed In The History Of Our Country"

    July 6, 2025
  • Unbelievably Bad -- Literally

    July 4, 2025
  • Repeal The Steal

    July 2, 2025
  • Our Record-High Stock Market

    June 30, 2025
  • Stuffing The Goose

    June 30, 2025
  • Yes! (Plus A Bonus)

    June 29, 2025
  • How Does THAT Make You Feel . . .

    June 27, 2025
  • Randi, David, Ken, and HYMC

    June 26, 2025
Andrew Tobias Books
  • Facebook
  • Twitter
©2025 Andrew Tobias - All Rights Reserved | Website: Whirled Pixels | Author Photo: Tony Adams