Over very long periods of time compounding will make you rich. We find it to be one of the more amazing aspects. Investing intelligently at high rates of return and/or over long periods provides investors with substantial sums. Even Albert Einstein said, “The most powerful force in the universe is compound interest.” And this was the man that derived the Theory of Relatively!
Sep 09, 2014
We often talk about putting the odds in your favor. In our opinion, speculating in the stock market is akin to gambling and in most times you are more likely to lose than win. Well, what about playing Powerball with your lucky numbers on a gut feeling?
According to the July/August 2014 issue of the Smithsonian Magazine, it would take 1,167,843 YEARS of playing the Powerball to have a 50-50 chance of winning the jackpot. This was taken from The Improbability Principle: Why Coincidences, Miracles, and Rare Events Happen Every Day by David J. Hand.
Is might just be us, but we do not like these odds very much. We encourage clients to always ask themselves how likely it is their investment thesis will work out before putting money to work.