Letters by Topic
Letters on The Miracle of Compounding
The exponential growth of wealth achieved by reinvesting earnings, producing outsized returns over long periods.
1965·First articulation of compounding as the central driver of investment returns
Compounding is the eighth wonder of the world. Those who understand it, earn it. Those who don't, pay it.
1991·Demonstrating the power of compounding in practice
At 19.7% annual compounding, $10,000 invested in 1965 grows to approximately $59 million by 1990.
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