If you ask around, what’s the eighth wonder of the world? you’ll get all kinds of answers. I think only investors/financial advisers will refer to Compounding …that too very few of them. Even though I have been in investment business since last 15 years, I never understood or cared about the importance of it. Only since last few years, I’m beginning to understand how powerful the concept is.
Yes, Einstein called “Compound Interest” the Eighth Wonder of the World, he added further “He who understands it, earns it..he who doesn’t..pays it.” The Snowball Effect means the same thing and makes it easier to understand, here is a post that explains it beautifully in simple language..not recommending the stocks mentioned here but idea is to get familiar with the concept.Continue reading →