The effect of compounding in investing
As William Shakespeare wrote, “How poor are they that have not patience.”
Compounding is one of the most elementary and popular investing strategies available to all levels of investors, from the most sophisticated pension funds to college students opening their first investment account.
However, taking advantage of the benefits that compounding yields takes a considerable amount of both patience and conviction, which are characteristics that are found more naturally in some of us than in others.
You need to have the capacity to remain invested for the long-term — despite the volatile swings of the stock market — to have…
