One of the greatest investors of our time attests to the simplicity of investing in the stock market. Find out how compounding stocks, compound investing, compounded interest all lead to more money with less effort.
The definition of compound returns is simple. Compound returns represents an initial investment plus the added interest, dividends, and/or capital gains growth over time. Think of a snowball rolling down a hill and the small ball at the top is your initial investment. As the ball rolls down the hill, the added snow represents the growth of the investment through additional money from interest, capital gains and dividends added to the principal amount. At the bottom of the hill is a big snowball!
Find out more about compounding stocks here
The post The Magic of Compounding Stocks-Get Rich While You Sleep originally appeared at Barbara Friedberg Personal Finance.