Compounding occurs when today's gains increase tomorrow's gains.
The result is not linear growth. The result is exponential growth.
Small improvements often appear insignificant in the short term but become transformative over long periods of time. This principle applies far beyond investing.
Whether intentionally or unintentionally, everyone is compounding something.
The question is not whether compounding exists.
The question is whether it is working for you or against you.
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