Top Tweets for #thejoysofcompounding

This is a perfect summary of Compounding in Investing - Portfolio value when investing Rs 30000 every month and assuming you get 12% returns every year - It takes a 8 long painful years to reach your first Rs 50 Lakhs It takes only half the time - 4 years to reach the second Rs 50 Lakhs It takes only ~3 years for the third Rs 50 Lakhs By the time you reach the 20th year, you add Rs 50 Lakhs almost every year! This is the magic of compounding - Initially, it is close to nothing, but if you give it enough time and stay put - you get to enjoy the fruits of your patience! We also call it the snowball effect, you have to keep pushing a snowball initially which takes a lot of effort. But once it reaches a certain stage, it keeps getting bigger and bigger and unstoppable! Live example of this Snowball effect - Warren Buffet started investing at Age 11, and he became a Billionaire at age 56. In his 60s he was at 10 Bn $, in his late 70s he was at 50 Bn $ and as of 2023 end (Age 93), he is worth a staggering 120 Bn $!