Compounding and the long haul.............

 

     As Charlie Munger once said, "The first rule of compounding: Never interrupt it unnecessarily."

Compounding might be the eighth wonder of the world, but it takes time to morph from a caterpillar into a butterfly. . . .

Compounding in a retirement calculator is neat and tidy.  Compounding in the stock market it messy and lumpy. . . .

     If you want consistency over the long haul, you have to accept lower returns.  And if you want higher returns over the long haul, you have to accept volatility.  You can never truly escape risk; you just change how you accept it.

-Ben Carlson, Risk & Reward