Compound interest rate - the 8th wonder of the world
Day: 17/07/2019 lúc 15:41PM
Everyone must have a starting point, be it the rich or the most successful. Billionaire Warren Buffett is not always as rich as he is today. In fact 99% of his assets are earned after 50 years of age. He has gradually built up his huge wealth over the years and now, as he turns 85, Buffett becomes one of the five richest people in the world with an estimated fortune of over $ 60 billion.
So how did he earn that huge amount of money? Tony Robbins - speaker and author of "Money: Master the Game" decided to ask this question to Warren Buffett.
I asked Warren Buffett: What makes you one of the richest men in the world?
He smiled and said: There are 3 points. First, the United States has great opportunities. Second, thanks to good genes, I can live long. Third, it is a DUAL INTEREST RATE.
The compound interest is simply understood that after taking interest, hitting the capital, continue to put all that money to get higher value interest. The key to compound interest is time and interest. The first few years may not see anything different, but after about 20 or 30 years, the money produced will be really terrible.
In fact not only Warren Buffett but many great men in the world have acknowledged the magic of compounding.
Albert Einstein once said: "Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn´t ... pays it". (Interpretation: Dual interest is the 8th wonder in this world. Those who understand it, use it will pay nothing for it).
This can be seen as a secret formula to help wealth of many billionaires increase rapidly exponentially and in the case of Buffett, that figure amounted to tens of billions of dollars.
Of the 3 points pointed out by Warren Buffett, the most notable and most critical point is probably compound interest: compound interest has brought him a huge fortune after more than 60 years of making the right investment decisions.