Compounding – The Magic Of A Long-Term Mindset And Delayed Gratification

“Compound interest is the eight wonder of the world. He who understands it, earns it….he who doesn’t, pays it” -Albert Einstein Presumably, Albert Einstein said the words above, and likewise, Benjamin Franklin said that time is money. Unfortunately, we seem to forget these very simple principles when it comes to most decision-making – be it…

Why Women Are Better Investors Than Men (Women Outperform Men In Investing)

Numerous studies suggest women are better investors than men, which of course might hurt the egos of many men. Why are women better investors than men? It’s because women make investing simple. Charlie Munger once said the best thing to do is to “sit on your ass” and let your capital compound without much stress…

The Case Against DRIP And Compounding Dividends (Arguments Against Compounding Dividends)

Compounding dividends and DRIP investing are popular. That is understandable because dividends have been a significant contributor to long-term gains in the stock market. It’s essential that you reinvest dividends to get the returns of the market, but many investors mistakenly focus solely on dividend stocks because of this. But a company has many opportunities…

Does Valuation Matter? Less Than You Think If You Buy Quality

Summary: Even the best stocks suffer from extreme overvaluation: As of today, the US stock valuations are at the highest since 1999, a time when the dot-com valuations went completely out of whack. In the decade after 1999, we witnessed the share price of fantastic companies like Coca-Cola, Intel, Cisco, and Wal-Mart languish despite delivering…

How Taxes Affect Your Compounding Interest (Taxes And Compounding)

How do taxes affect your compounding interest? To shelter your savings from taxation while building your nest egg is extremely important and you better understand taxes and compounding. I believe this is pretty obvious for most investors, but I suspect it’s still neglected because the headwind takes about ten years to really make a difference….