Got a little money? Invest it wisely and turn it into a lot. You can’t afford not to
Eli Fried has an MBA, and he’s read hundreds of books on finance, investments, economics, and business. But most of what he knows about investments he learned on the job — by investing. He started reading about the stock market as a teen, and his accrued knowledge served him well when he began working in a real estate investment firm. He learned how to find a good deal, evaluate the risk level, and determine whether or not to go for it. Today, he’s involved in the broader investment industry both as an active investor and as an advisor to others. In his own words, his job and mission are “to help people make better financial decisions.”
Compounding has famously been called a world wonder, but many people struggle to comprehend the importance of the concept. It comes down to some math.
If given a choice, which opportunity would you choose?
The first choice seems intuitively better, but the second is actually more profitible. People hear about steady compounding and think, “Nope, that’s not going to do it. I need more.” So they put their money in an exotic option that promises a 100 percent or 10,000 percent return — and enter a very high risk. Instead, people need to think of investing as Warren Buffet does. Compound interest is a snowball. You start with something tiny and keep rolling it around down a snowy hill. It compounds and gets huge very fast.
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