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Tomconroy

(7,611 posts)
4. Only if you were in a savings account
Mon Apr 26, 2021, 08:13 PM
Apr 2021

If you were in the market since 1982 or so the compounding on your investments is astonishing. I may have used the wrong phrase by referring to interest.
When I was in law school our class in Corporations was taught by the Dean who was a retired Wall Street lawyer. Everyone warned me not to take the class because he was a very tough grader. Usually he would have a class of about twelve students. That year about 40 of us decided to take a chance and we all did OK. I got my usual B.
The only thing I remember from the class is one day he said 'There are only two really interesting things in the world: One is leverage (Making money off of borrowed money).
The other is compound interest'. I got leverage at the time. I couldn't figure out what he was talking about with compound interest. Now after seeing my small investments compound over 35 years, I confess he was right. It is absolutely fascinating.

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