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Compound Growth and Investing

By: Jim Kroswell

Compound growth is a phenomenon which means that things to not increase in a standard line function; it increases exponentially in a logarithm type of growth. Essentially, it goes really fast.

Compound growth is one of the biggest kept secrets in investing.

It is a scientific principal which means things increase greatly, but they can go down just as quickly.

Compound Growth

Compound growth is a mathematical certainty. Stock will grow in a compound way. This means their value will go up exponentially.

Compound growth and stocks

Compound interest is a way that people can make money in the stock market. Stocks go up and their upward trajectory is characterized by compound interest. This is because when a stock goes up one day, when it goes up the next day, this previous gain is included in the percentage of upward growth. This is what makes stocks go up using compound growth.

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