The Compounding Effect of News
Heart disease has declined 1.5 percent per year, and if that news is on the internet, it is not likely to go viral. But what is overlooked is the compounding effect, which is invisible in the short run, and only noticeable after 15 to 20 years.
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The Power of Compounding
At first glance, compounding does not look remarkable. However, looking at compounding in action, you will notice a few things.
Consider, for example, investing in stocks at an average real return of 6.8%. (It is inflation-adjusted.) During the first few years, compounding doesn't real...
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