Buffett's approach to holding quality companies "forever" has allowed compounding to work its magic. His biggest winners weren't quick trades but businesses he’s held for decades, allowing their intrinsic value to materialize.

When Buffett finds businesses with strong competitive advantages, he's content to let time work in his favor. Coca-Cola, which Buffett began purchasing in 1988 and still holds today, has returned 7290%, including dividends.