Power of Compounding

[nomad]

Your investment can be profitable (or let's say your investment will grow) only when you are compounding your profits. Compounding means you do not withdraw your return on investment, instead, you reinvest your profits. For instance, you have invested in the stock market and you receive dividends every 4 months. Instead of using the dividends, you buy more stocks with that money. Compounding will grow your portfolio and help you become rich sooner.

 

[Suba]

In the long term, the effect of compounding on investment will help accelerate the increase in investment funds and returns.Compounding is also known as compound interest, so you as an investor can apply the concept of compounding effects regularly, the most important thing is that you can apply it correctly.

 

[riberet19]

Compound interest is one of the best weapons that an investor can have in the long term, there are many investments where you can make compound interest with a decent return, for example in government bonds or exchange-traded funds with positive historical returns, in addition to many others.

 

[cherry123]

I always want to go for investment that comes with compound interest. This is one way of having an investment that will be long term. where one can make compound interest

 

[Passiveearner]

I do not earn interest at all. However, the fact of the matter remains that I do certainly invest money in many other opportunities. This may involve reinvesting money and making sure that I make profits and then reinvest the profits in a wise manner.

 

[cherry123]

Compound interest will work with investing money in many different business opportunities. so it will be good for someone to reinvest money to make more profits from each of these businesses

 

[Bisolami]

I always want to go for investment that comes with compound interest. This is one way of having an investment that will be long term. where one can make compound interest

I actually feel like reinvesting is a way to compound. Imagine making an amount of money as a profit and taking a part of it to invest again. That is compounding and your money will continue to grow

 

[cherry123]

Sure, reinvesting is a way to do compound interest. You would keep making an amount of money as a profit over and over again when you keep reinvesting your profit to make interest

 

[Rubz]

The power of compounding is very important in investing. As a matter of fact, it is a key principle in investing. I do not think i can do this though because it is risky.

 

[cherry123]

Compounding interest is very helpful when it comes to reinvesting. The truth remains that it is a key principle in investing again into a business. You just have to keep compounding

 

[Stardom22]

ln normal circumstances that strategy would be used by most investors put there. That means a more consistent compounding for a longer time of investing would arrive the investors to their financial freedom more easier.