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Understanding Investment Growth with the Rule of 72
This chapter explores the performance of a specific American Depositary Receipt (ADR) that surged in value from $4 to $20 since 2009, demonstrating an impressive annual growth rate. The discussion centers around the Rule of 72, a mathematical method for estimating the time it takes for investments to double based on a fixed return rate, while using real-life examples to clarify the process. Engaging in a dialogue, the speakers emphasize the significance of comprehending investment growth dynamics, relating it to broader market trends and recent historical events.