3 ms·
Compounding as a way of building wealth and value
- liqudity 3y agoIf someone can tell me how to make 40% annually consistently for 42 years, I'm happy to put in $1k and wait
- mlhpdx 3y agoI recall the expected rate of return on investments (measured over decades) to be closer to 5% than 40%. Nonetheless, compounding does work - it just takes a little more capital and a little longer.
- syndicatedjelly 3y agoYeah the problem is there is no single investment that will happily grow 40% a year and reward you for doing nothing. At that rate of risk, expect any of a number of things to happen before Year 42: - You get scammed/cheated - Company goes bankrupt - Fund goes bankrupt/fails - The currency one invested in fails to keep up - You need the money (life isn't perfect, and a few million dollars at year 20 can solve a lot of problems) - You stop being greedy and are happy with the cumulative returns