To take full advantage of the benefits of compound growth, investors, especially those just starting out, should own a number of broadly diversified, low cost, tax efficient index funds. By doing so they will maximize their net invested dollars and the long term growth of their portfolio.
Albert Einstein, no slouch when it comes to number crunching, is reported to have said that the most powerful force in the universe is compound interest. And perhaps growing rich slowly is the most unappreciated benefit of patient, disciplined, long-term investing.
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