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A common Fallacy related to #CompoundingEffect
You will hear even the best proponents long term investing and compounding say that, "the problem with compounding is that most of the gains are back ended.”
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You will hear even the best proponents long term investing and compounding say that, "the problem with compounding is that most of the gains are back ended.”
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Often the example of Warren Buffet is quoted saying that most of wealth got generated after he crossed 70 years (even though he started at the tender age of 11!).
This statement is specious.
It gives you an impression that it is a slow way of gaining & it needs patience...
This statement is specious.
It gives you an impression that it is a slow way of gaining & it needs patience...
...and possibly there is a faster way of gaining other than compounding. Let me clarify here...with the exception of sub-atomic world, a lottery, or adoption by a wealthy person or any such plain luck, there is no quantum leap in real life.
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