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8th wonder of the world einstein3/2/2023 ![]() An example is the compounding of interest on loans, which is a disadvantage to you. Einstein’s quote also highlights that if you don’t understand compounding interest it will work against you. The example that should be taken from Einstein’s quote and Buffett’s achievements is that beneficial actions today will provide much larger benefits over time, due to compounding. ![]() Sure the level of wealth Buffett has accumulated would be hard to replicate, but you don’t need to have tens of billions of dollars to achieve a very comfortable lifestyle. He has achieved a higher return than most and has compounded it for longer than most, with astonishing results.ĭon’t make the mistake that just because you’re not Albert Einstein or Warren Buffett you can’t tap the same benefits Buffett has. While Buffett started earlier than most in rolling his snowball down the hill (early teens) and continues growing the snowball today (turned 87 in 2017) and it is fair to say he is a better investor than most, it is the compounding of wealth he has achieved that separates him from the crowd. He understands the magic of compounding returns and you would be wise to understand it also. It’s no coincidence his authorised biography is titled “The Snowball”, referencing The Snowball Effect. ![]() Regarded by many as the greatest investor of all time, certainly the best known, Warren Buffett has built one of the world’s greatest ever financial fortunes largely off the back of the eighth wonder of the world, compound interest. He who understands it, earns it … he who doesn’t … pays it.”Įinstein isn’t the only smart person that understands the power of compound interest. “Compound interest is the eighth wonder of the world. ![]()
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