The Snowball Effect: How To Compound Your Wealth like ...
At this rate an investment in the stock market has historically doubled every 10.5 years. It takes more time to compound wealth in the real world – but that doesn't make the principles of compounding any less powerful. Take Warren Buffett as an example. Warren Buffett is worth over $60 billion. Warren Buffett's wealth comes from the tremendous benefits of the snowball effect through time.
The Power of The Snowball EffectBefore we discuss how to harness the power of the snowball effect we must understand the power of compounding.The snowball metaphor visually shows...How You Can Harness The Power of The Snowball EffectYou can harness the power of the snowball effect by investing in the same type of businesses that have made Warren Buffett so wealthy over time.Tak...Example #1: Coca-ColaEvery $1 invested in Coca-Cola at the beginning of 1990 was worth $15.25 by the end of 2015. Coca-Cola compounded investor wealth at 11.5% a year (...Example #2: Lowe'SLowe's (LOW) is the 2nd largest home improvement store in the United States. In 1990 Lowe's was one of the largest home improvement stores in the U...Example #3: Procter & GambleProcter & Gamble (PG) was just as well-known in 1990 as it is today. The company has an iconic brand portfolio with names like Tide, Bounty, Gillet...Example #4: Colgate-PalmoliveColgate-Palmolive (CL) traces its history back to 1806. Both the Colgate and Palmolive brands are easily recognized.In addition to these brands, Co...Example #5: HormelHormel Foods (HRL) recently declared its 50th consecutive annual dividend increase. The company was founded in 1891.Hormel is a dominant player in...Example #6: Johnson & JohnsonJohnson & Johnson (JNJ) is currently the largest health care corporation in the world. The company is one of the most stable businesses in the worl...Example #7: 3M3M (MMM) is a large, diversified manufacturing and consumer products firm. The company makes Filtrete air filters, Post it notes, Command adhesives...Snowball Effect Stocks For The Next 25 YearsA summary of results for the 7 real-life examples is below: 1. Lowe's grew $1.00 to $108.49 2. Hormel grew $1.00 to $29.63 3. Colgate-Palmolive gre...
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