The Power of Compounding
We all know the outcome of Aesop’s well known fable “The Hare and The Tortoise”. The lessons learnt from such a fable can be applied to many facets of everyday life and investing. In particular, the power of compounding in growing your wealth is one area that shouldn’t be overlooked, especially if dividends can be reinvested. The compounding of returns is a powerful factor which is constantly at work for portfolios that are properly structured, take a long term view and are well managed. In my latest article I examine what happens to $100,000 after 30 years compounding at the long term average growth rate of the Australian market. I also look at the implications of under and over performance of just 2%, the end results are worthy of consideration. Read the full article: (VIEW LINK)
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