Billionaires Buffett and Gates Reveal Their Secret to Success: Focus

Two of the world’s most successful billionaires, Warren Buffett and Bill Gates, once participated in a simple yet revealing exercise at a gathering. Each was asked to write down a single word that they believed summed up the secret to their success. Interestingly, both independently chose the same word: focus.

Bill Gates shared more insight into this during a 2016 interview with Charlie Rose, where he highlighted the value of passion and early dedication. “The thing you do obsessively between age 13 and 18, that’s the thing you have the most chance of being world-class at,” Gates explained. For him, that passion was computer programming. His deep interest in coding paid off, as it eventually led him to co-found Microsoft and become a millionaire in his twenties. Today, Gates is the seventh richest person globally, boasting a net worth of about $127 billion, according to the Forbes real-time billionaires index.

Warren Buffett, too, showed a focused interest early on. In a CNBC interview, Buffett reflected on his youth, saying, “Well, I was pretty interested in investments.” That interest was already present when he was just 11 years old. In 1942, he used his life savings of $114.75 to purchase three shares of Cities Service, an oil and gas company now known as Citgo.

His early obsession turned into a lifelong journey in finance, making him one of the most celebrated investors in history. Now 94, Buffett recently announced his retirement as CEO of Berkshire Hathaway during the company’s annual shareholder meeting in May. Berkshire Hathaway owns a broad range of well-known companies, including Geico, Duracell, and Dairy Queen. As of now, Buffett stands as the fifth wealthiest person on Earth, with a net worth of approximately $160 billion.

Buffett also once recounted a moment when Gates’s father invited a group of prominent men to write down one word that defined their path to success. Both Buffett and Gates again wrote down the word “focus,” without knowing the other had done the same. “He was focused on software, I was focused on investments,” Buffett said. “It gave me a big advantage to start very young — there’s no question about it.”

Even if you’re no longer in your teenage years, Buffett and Gates’s stories suggest it’s not too late to apply the principle of focus to build wealth. There are three strategies inspired by their journeys that could help you do just that.

Start Early and Stay Focused

The importance of starting early in investing cannot be overstated. It is a cornerstone principle for both Gates and Buffett. Buffett has often discussed the power of compound interest, which allows wealth to grow faster as you earn interest on both your initial investment and the interest it has already generated.

In 1999, at a Berkshire Hathaway shareholders meeting, Buffett vividly illustrated this idea. “We started building this little snowball on top of a very long hill,” he said. “The trick is to have a very long hill, either start very young or live to be very old.”

There are various ways to begin your investment journey. You might choose to buy individual stocks or low-cost index funds through a brokerage account. Alternatively, you could invest using tax-advantaged accounts like a 401(k) plan, if your employer offers one, or an individual retirement account (IRA).

Staying focused once you begin investing is equally crucial. Even small, regular investments—such as putting aside spare change—can build significant wealth over time. The longer your money has to grow, the greater your returns could be.

Focus on Quality and Value

Buffett is widely known for his commitment to value investing. This method involves identifying stocks that are priced below their true worth and holding onto them for the long haul. He typically seeks out businesses with strong, consistent earnings, healthy cash flow, and low levels of debt.

His preference for long-term investment in high-quality companies is evident in his substantial, enduring stakes in firms like Coca-Cola and American Express. As he wrote in his 1996 letter to shareholders: “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”

One of the most prominent examples of Buffett’s value investing philosophy is Berkshire Hathaway’s stake in Apple. As of now, Apple represents about 28% of the conglomerate’s entire stock portfolio. At the 2023 Berkshire Hathaway shareholders meeting, Buffett said of Apple, “It just happens to be [a] better business than any we own,” praising the company’s outstanding financial performance.

Focus on Learning and Improving

No investment journey is without its missteps, and even legendary investors like Buffett have faced their share of regrets. At the 1997 Berkshire Hathaway meeting, Buffett admitted to “mistakes of omission,” referring to missed opportunities to invest in excellent companies.

His long-time business partner, the late Charlie Munger, who passed away in 2023, also addressed the importance of recognizing rare investment opportunities. He remarked, “Most people get very few, what I call, no-brainer opportunities, where it’s just so damned obvious that this is going to work.” Munger emphasized the need for both courage and intelligence when those rare chances appear. “I think people have to learn to have the courage and the intelligence to step up in a major way when those rare opportunities come by,” he said.

Of course, not everyone is well-versed in the complexities of investing. Fortunately, help is available. You might choose to work with a professional financial adviser who can offer tailored guidance based on your financial goals. Alternatively, modern investing apps and platforms can help automate the process, making it easier for beginners to take that first step.

In summary, the shared philosophy of Buffett and Gates highlights how the principle of focus—especially when applied early and consistently—can yield extraordinary results. Whether it’s choosing the right assets, learning from past errors, or staying the course through market ups and downs, staying focused might just be the clearest path to building wealth over time.