don´t you need too sell the stock in order to materialize the earnings? if you just let the stock as is will it still be affected by compound interest?

My father taught me this when I was 10 years old - all thanks to a school teacher who joked about charging me interest on 12 pennies I borrowed off him , dad set me straight pulling his proposal apart , the rest is history, my dad died of old age and I will have one hell of a lining in my coffin which exponentially is getting closer every day now.

1:18 1:17 passive income?

Never give up when its hard😢or nothing to do with it😢😢CI😊

Watching in my 40s... And only just starting I feel so behind!

Your videos are always high quality!

im so cooked for this test💀🙏

Most amazing explanation -- you just answered every single question that came into my head from your previous comments. Thank you!

The presentation is a bit superficial. There are 4 ways how stocks or the companies which they represent are compounding: 1. Companies take capital and invest it and earn a return. Companies retain a part of their earnings and reinvest it in the business to grow the earnings of the business, for example with the return on equity of the company. Organic reinvestment if profitable, has the greatest potential returns. 2. If the companies do not find enough opportunities to reinvest organically into the business or need not much capital, they can buy back their own stocks, which is basically the same as if a private investor would buy the stock but more tax efficient. 3. Companies could decide to buy another company. 4. Companies could pay out a part or all of their earnings as dividends so that the shareholders can reinvest the money in the same or other companies. All of these ways always play a role in the overall compounding of your portfolio. The most efficient ( and tax efficient) way is the first component, a company that can reinvest large portions of their earnings at a high returns internally or organically in growth ( which by defintion happens at book value , while the reinvested earnings become a multiple of the book value at the stock exchange). Imagine a company has a return on equity of 20% and can reinvest at 20% return. For example a young Starbucks which could just open new stores which often had that return. Or you have a company which can grow organically without the need for much capital to do it. The other three ways 2 to 4 usually earn lower returns because they are less tax efficient and you cannot buy good other companies at book value, you always have to pay a multiple if you buy companies or shares of public companies.

Another tool to look at is the A.T.O 15 year exemption rule . basically if you own a commercial property for 15 years or more , reach retirement age. use by your busness at least 75% of the ownership time. owned by yourself /company active "not a shelf company"dosnt have to make a profit every year. YOU dont pay any C.G.T ,it worked for me ,,GOOGLE "A.T.O 15 year exempion" icant beleive the amount of F.Planners and investors never heard of it ,its there to everybody , maybe if it gets kown the gov may end it?

Great analysis, thank you! I have a quick question: My OKX wallet holds some USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?

Thank you very much for this wonderful video. To whoever is running this channel, I just want to say "keep going", you're inspiring someone and changing a life.

I recently sold some of my long-term position and currently sitting on about 250k, do you think Nvidia is a good buy right now or I have I missed out on a crucial buy period, any good stock recommendation on great performing stocks will be appreciated.

great video thank you !

So no maths genius skipped power 10 session

Invest the investment thats it thats all. Let it grow

It just comes off as a Fancy term for picking the right investments some people may just run themselves off a cliff without understanding that anything under a dollar on the stock market has high-risk 😂 just people before you do anything invest Time in to researching a company or etf theres company's thatpay monthly quarterly and yearly dividend if you don't have a whole lot of money 7% return or higher is going to help you grow but you have to research before you invest 😊

So basically just get dividend so you minimize risk lol

I invested in index funds last 2021, and It didn't earn any interest, and didn't even compound.

Great video! Very well explained, thank you!

Well this is not accurate because we all know men save far more and spend far less than females. So Kevin would have far more money than the female

Since you don't have to sell the investment and reinvest the capital gain to be compounding, what happens when the investment suddenly depreciates will you loose your money since you didn't secure the gain? Will all the previous compounding affect be lost?

Man it sucks that no one realizes that you dont actually earn interest on investments. Ita unrealized gains meaning they dont actually materialize until you cash them out. This is stocks mind you. And they dont compound unless you have dividends. Gains on a stock dont magically buy you more stock. Im so sick of everyone talking about compound interest and loop stocks into the conversation. Oh and by the way usually when you do the math dividends, on average, only end up being a couple percent.

For anyone who wants to know "why 72?" the answer is 69 (point 3). If you have any amount and wish to double it at 1% per period of time, your amount will have doubled from your starting amount after 69.3 periods of doubling (natural log 2). The rule is 72 because though marginally less accurate it is easier to calculate in your head and approximates well.

I finally gotten to 1M on my portfolio. Looking back my balances totaled $135k 8yrs ago. I haven't done anything special except let it grow. My income has doubled so I'm contributing more but I think interest has done most of the growth

All well and good but lets remember mr tax man needs hes 28 % and then theres inflation. so in the end you might want to knock 40 % of your projected end number. advice note use a tax free account and max it out every year to the penny. oh and unlike me dont get a starbucks habbit or mcd. other advice get a good ETF and invest inside again a tax free trading account. 🤩 one thing i learned if you have money it isnt actually yours even more the case if its in large volumes. care is needed as the law can be very extreme in tax non payments . look it up !!! it can make you homeless. from cash rich to a big fat 0 very fast . because someone said so. call it tax if you like but the end result is theft , we can take from you sir.

This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.

Wow interesting How can l invest

Talks to much and the audio is very bad

Rate cuts commence in June 2024, taking 6-8 months to complete. A potential crash, if any, might occur by March 2025. The soft landing narrative is gaining traction, making this big recession everyone is calling for less likely. With $1 million from a business sale, I'm seeking profitable investment opportunities for the next 3 years.

Currently, high interest rates are impacting 20+ year bonds, REITs, and Utilities, presenting a favorable opportunity for Dollar-Cost Averaging (DCA) or investing. i'm looking to invest around $250k. Your insights in a video on this subject would be greatly appreciated. Thank you

Best l love this content

Omg giiiirl thank you so much for this! I feel so dumb trying to figure out all this finance stuff😭 trying to be better with my finances at 33🥹

Great explanation! barely any one out there have explained this well. Video need more likes

Wow great video !

Kevin is an idiot

Kevin would get interest on $1100 in year 2 not $1000 each year. There was no mention of him taking out the $100

But how does your interest starts to grow on your other interest? do i need to sell my stock or does it go automaticly? The only thing i get is that i may never take the winning interest out of the portfolio. But how does the interest grow on interest if i never claim the interest by selling the stock?

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for...

The key to building wealth is to start while young. A Teenager’s Guide on how to Invest Like Warren Buffett and Charlie Munger is a great book for teens.

Please explain again as I am still confused at how it’s compounded. I’ve heard other people say the same as you. In my experience investing in stocks, it seems to me that I’m not making a return on my return. You need to reinvest your gains in order to compound. Or am I missing something? Or is the value of my portfolio taken into account instead of the principle? That makes sense now. If the value of my portfolio is 10,000€ and I make 1% gain, then the value of my portfolio will increase by 1%.

Is compound interest get only from second year? Or can we compound interest if deposit only one year?

Where do i invest? And how.

Great video! Where can I do the compound interest? What bank or financial institutions give the higher interest, please? Thanks

Yeah except good luck getting 10% a year let alone every year what a joke😂

Does compound interest also apply to shares held inside an employee stock compensation package?

Where is someone getting a 10% annual interest??

Great video. 👍

😊😢🎉🎉😊🎉🎉😂😊😊😂🎉😅😅😅😅

Hi, how to do that where i can start to invest?