The Daily Buffett

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The Power of Compound Interest

August 22nd

My wealth has come from a combination of living in America, some lucky genes, and compound interest.

Warren Buffett

Buffett's fortune can be traced back to three factors: his residence, inherent abilities, and compound interest. The first two - prosperity of nation and the fortunate genetics - are admittedly beyond our control. They played a crucial role in his ascent, but they are not universally accessible, nor a guarantee of success.

However, compound interest, the principle of an investment growing exponentially over time, is within everyone's grasp. It is the slow, steady progress of a well-thought-out investment. It may not generate much attention or excitement at first. But over time, it yields consistent, reliable returns. It is these unassuming, often overlooked decisions that form the bedrock of a solid investment portfolio.

So, let's take heed of Buffett's subtle yet powerful message: acknowledge and leverage the opportunities within our reach, while maintaining gratitude for the fortunate circumstances life may have granted us. For in the world of investing, as in life, the quiet, consistent effort is often the most rewarding.

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