I’m sure you’ve heard that “Compound interest is the eighth wonder of the world.” It’s usually attributed to Einstein.
The problem is, as far as I can tell, he never actually said it. At the very least, it was never published. It’s a myth. But it also serves a purpose…
By reinvesting growing dividends, not only do you benefit from share price appreciation over time, but also a steadily growing share count which multiplies over time as annual dividends increase. That’s why we always evaluate a company’s ability to maintain and raise its dividend.
So, even if Einstein didn’t say it, compound interest is probably the most powerful force in the universe when it comes to creating wealth… especially over the long term.
Keep reading to find out about Myth #2…
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