Albert Einstein when asked what he considered to be the most powerful force in the universe answered: Compound interest! What you have become is the price you paid to get what you used to want.
People do dollar cost averaging because they have regret of making one big mistake. But the fact of the matter is that, mathematically, the market rises more of the time than it falls. It falls, but it rises more of the time than it falls.
Time is your friend, impulse is your enemy. Take advantage of compound interest and don't be captivated by the siren song of the market.
The miracle of compounding returns has been overwhelmed by the tyranny of compounding costs.
Berkshire Hathaway can transfer excess capital from businesses that don't need it to businesses that do need it, tax free and in a way that enhances compound annual growth rates.
Enjoy the magic of compounding returns. Even modest investments made in one's early 20s are likely to grow to staggering amounts over the course of an investment lifetime.
Our favorite holding period is forever.
Investors that do the best, and have done the best, are those that stay and compound at above-average rates over the long term.
Long-term investing has gotten so popular, it's easier to admit you're a crack addict than to admit you're a short-term investor.
The ideal business is one that earns very high returns on capital and that keeps using lots of capital at those high returns. That becomes a compounding machine.
Net return is simply the gross return of your investment portfolio less the costs you incur. Keep your investment expenses low, for the tyranny of compounding costs can devastate the miracle of compounding returns.
Before starting my own investment funds, the only models I was aware of were those of Warren Buffett and Charlie Munger. Their models made a lot of sense to me, so I cloned them.
