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3min chapter
Berkshire Hathaway Part I
Acquired
The Power of Compounding
If you invested one dollar and just let compounding do its thing for 25 years, you would end up with 24 point nine dollars at the end. And this isa assuming a compounding rate of 15 %. If you pay taxes every five years, that same dollar is worth 16 point eight dollars. So it's a 50% increase in the amount that you are left with at the end if you just don't interrupt compounding by doing the thing that all humans want to do: be active.
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