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Compounding thus can be construed as interest on interest—the effect of which is to magnify returns to interest over time, the so-called “miracle of compounding.” When banks or financial ...
If you reinvest dividends and continue to hold stocks as their underlying businesses grow, your returns should reflect a powerful compounding effect. Don't overlook Einstein's more ominous ...
Any good investor knows about the compound interest effect. It works in such a way that earnings of an asset are reinvested in order to generate additional earnings. Or as Ben Franklin once said ...