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TraderHQ Author | Aaron Levitt
Did you know that...
- The benefits of compounding can be visualized as a curve, starting slow but steepening as time progresses?
- Studies have shown that most active traders, who frequently buy and sell assets, underperform long-term investors over extended periods?
- Dividend reinvestment plans (drips) allow investors to reinvest their dividends back into more shares of the stock, benefiting from compound growth?
- While the annualized return gives a smoothed percentage return over a period, the compounded annual growth rate (CAGR) gives a more accurate picture of investment growth?
- When comparing multiple investments, CAGR can help in eliminating the effects of varying time periods?
Quotes of the Day:
- "The most important thing in investing is not to lose money." - Michael Burry
- "The stock market is a giant distraction to the business of investing." - Irving Kahn
- "The best investment you can make is in yourself." - Thomas Rowe Price Jr.
- "The stock market is a device for transferring money from the impatient to the patient." - David Einhorn
- "The best investors are those who are able to stay calm and rational in the face of market volatility." - Louis Bacon
More Stock Market Resources: