Warren Buffett said he ‘killed the Dow’ back in the 1950s, believed he could earn 50% a year again. Follow his road map

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Though Warren Buffett stepped down from his role as CEO of Berkshire Hathaway at the end of 2025, he is far from retired in the traditional sense. The 95-year-old is still working in the office five days a week as the company’s chairman — which tracks for the man who once said, “I will keep working until about five years after I die (1).”
Buffett has also retained some ownership of Berkshire, though all his shares will go to philanthropy over the decade or so following his passing. And since the Oracle of Omaha is renowned for generating oversized returns, those shares are worth a pretty penny.
From 1965 to 2025, his company delivered compounded annual gains of 19.7%, substantially outperforming the S&P 500’s 10.5% average annual return during that 60-year period. Today, Berkshire Hathaway’s cash and U.S. Treasury holdings exceed $370 billion (2).
And Buffett believes he could once again build massive wealth by starting relatively small.
In 1999, he told Bloomberg Businessweek, “The highest rates of return I’ve ever achieved were in the 1950s. I killed the Dow. You ought to see the numbers,” he said (3).
And he was confident that he could do it again, stating, “I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that.”
Twenty-six years later, that confidence hasn’t been shaken. Here’s how Buffett would do it.
Moody’s Manuals were a series of publications by the financial services company Moody’s on publicly traded stocks. These texts provided detailed information on various industries, companies and securities.
“I found all kinds of interesting things when I was 20 or 21,” Buffett said at Berkshire’s annual shareholders meeting in 2024 (4).
He was able to acquire extensive knowledge of how different industries and companies functioned, even little-known ones, thanks to his dedicated research. He believes this type of behavior can provide an edge.
“I don’t know what the equivalent of Moody’s Manuals or anything would be now, but I would try and know everything about everything small, and I would find something,” he said.
Modern platforms like Moby are the equivalent. Their team of former hedge fund analysts and experts spend hundreds of hours sifting through financial news and data to provide top-tier stock picks and crypto reports to keep you up to date on what’s moving the markets.
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Keep in mind that Buffett’s comments are about what he would do, not necessarily what the average person should do. He considers investing his passion, and has previously expressed that stock picking is not an optimal strategy for average investors.
In fact, at Berkshire Hathaway’s 2021 shareholders meeting, Buffett stated, “I do not think the average person can pick stocks (5).”
Instead, he has repeatedly said that most people should invest their money in a low-cost, S&P 500 index fund.
If you’re looking for an easy way to invest, consider Robinhood.
Platforms like Robinhood are designed to make investing simpler and more approachable.
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With access to popular ETFs like the Vanguard S&P 500, you can build diversified exposure without needing to pick individual stocks.
The platform also offers both a traditional IRA and a Roth IRA, so you can choose the tax strategy that fits your retirement plan.
With its recurring investment feature, you can set up automatic investments of your preferred fractional shares, stocks and ETFs on your own schedule.
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Earn up to 3% on eligible account transfers to a taxable Robinhood account through March 25th. Risks and terms apply. Robinhood Gold ($5/mo) subscription may apply.
As Buffett stated, if he had to start with just $1 million today, he would arm himself with knowledge by going through today’s equivalent of Moody’s Manuals in detail to find opportunities — including ones that may not be suitable for large funds.
You can still find these texts today — they’re called Mergent Manuals. Mergent, Inc. acquired Moody’s Financial Information Services division in 1998 (6).
Investors today can also take advantage of tools and resources that didn’t exist when Buffett first started investing, such as internet databases.
For example, the EDGAR database from the U.S. Securities and Exchange Commission allows investors to access detailed filings and reports submitted by publicly traded companies.
While the investing legend believes a 50% annual return is achievable, he acknowledges it requires more than just ambition.
“With $1 million, you could earn 50% a year, but you have to be in love with the subject. You can’t just be in love with the money,” he explained at the 2024 shareholders meeting. “People find other things in other fields because they just love looking for them.”
If you’re not passionate about the subject, a financial advisor can help bridge the gap — they’re already doing daily deep dives and can provide expert guidance on your portfolio.
But finding the right advisor for you isn’t always easy.
That’s where Advisor.com can come in. The platform quickly connects you with expert advisors you can trust.
Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their advisors are fiduciaries, meaning they are legally required to act in your best interests.
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Invest in Yourself (1); Berkshire Hathaway (2); Bloomberg (3); CNBC Television (4); CNBC (5); Mergent (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.