Snowball Effect Investing | Compound Your Wealth Like Warren Buffett
Updated on May 22nd, 2025 by Bob Ciura
The snowball effect shows the power of compounding.
When you push a small snowball down a hill, it continuously picks up snow. When it reaches the bottom of the hill it is a giant snow boulder.
The snowball compounds during its travel down the hill. The bigger it gets, the more snow it packs on with each revolution. The snowball effect explains how small actions carried out over time can lead to big results.
In the same way, investing in high-quality dividend growth stocks can generate large amounts of dividend income over long periods of time. That’s because dividend growth stocks tend to pay rising dividends every year.
And then you can reinvest those rising dividends to purchase more…
