From Yahoo Finance: 2025-06-13 13:37:00

President Donald Trump wants to give every American newborn a stock account and $1,000 to start them off. Warren Buffett agrees that buying stocks early and holding for the long run is key to wealth creation. The program could help narrow the wealth gap, but children of richer families have other advantages.

Trump’s proposal includes Trump Accounts for newborns, with a tax-deferred investment account seeded with $1,000. Each child’s guardian can deposit up to $5,000 annually and invest in broad US index funds. Buffett, a long-time advocate of early investing, supports the idea of giving children a financial head start.

CEOs from companies like Dell, Goldman Sachs, and Uber endorse the Trump Accounts, with Buffett’s principles aligning with the proposal. While the plan may not entirely close the wealth gap, it could encourage savings and financial literacy, reducing inequality in the long run.

Buffett, whose net worth exceeds $150 billion, emphasizes the importance of starting young in investing to benefit from compound growth. While wealthier families may have additional advantages, Buffett views the program as a positive step towards giving more Americans a stake in the market.

Despite potential challenges, Buffett sees the government-funded stock accounts for newborns as a way to promote compound growth and wealth creation over time. The program aligns with his core principles of long-term investing in the market to build wealth steadily and securely.

Read more: Trump’s $1,000 baby bonus idea takes a leaf out of Warren Buffett’s wealth-building playbook