๐๐๐ ๐๐๐๐ ๐๐๐๐๐ ๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐ ๐๐ ๐๐๐ ๐๐๐๐๐?
It could be millions. Not sure if long posts are for you, but this might be worth reading.
๐๐ก๐ ๐๐จ๐ฐ๐๐ซ ๐จ๐ ๐๐จ๐ฆ๐ฉ๐จ๐ฎ๐ง๐ ๐๐ง๐ญ๐๐ซ๐๐ฌ๐ญ: ๐๐ก๐ฒ ๐๐ก๐จ๐จ๐ฌ๐ข๐ง๐ ๐ญ๐ก๐ ๐๐ข๐ ๐ก๐ญ ๐๐ง๐ฏ๐๐ฌ๐ญ๐จ๐ซ ๐ญ๐จ ๐๐จ๐ฉ๐ฒ ๐๐๐ญ๐ญ๐๐ซ๐ฌ
We often hear people talk about the magic of compound interest, but how often do we actually sit down to run the numbers? The reality is, while everyone knows it's powerful, few take the time to fully understand just how massive the difference can be over time.
๐๐ก๐๐ญ๐ก๐๐ซ ๐ฒ๐จ๐ฎโ๐ซ๐ ๐๐จ๐ฉ๐ฒ๐ข๐ง๐ ๐๐ง ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐จ๐ซ ๐ฐ๐ก๐จ ๐๐จ๐ง๐ฌ๐ข๐ฌ๐ญ๐๐ง๐ญ๐ฅ๐ฒ ๐๐๐ซ๐ง๐ฌ ๐%, ๐๐%, ๐๐%, ๐จ๐ซ ๐๐ฏ๐๐ง ๐๐% ๐๐ง๐ง๐ฎ๐๐ฅ๐ฅ๐ฒ, ๐ญ๐ก๐ ๐ฅ๐จ๐ง๐ -๐ญ๐๐ซ๐ฆ ๐ข๐ฆ๐ฉ๐๐๐ญ ๐จ๐ง ๐ฒ๐จ๐ฎ๐ซ ๐ฉ๐จ๐ซ๐ญ๐๐จ๐ฅ๐ข๐จ ๐๐๐ง ๐๐ ๐๐ฌ๐ญ๐จ๐ฎ๐ง๐๐ข๐ง๐ .
Letโs break down what those returns actually look like when compounded over 5, 10, 15, and 20 years with an initial investment of โฌ1,000.
๐๐ ๐ฒ๐จ๐ฎ ๐๐จ๐ฉ๐ฒ ๐๐ง ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐จ๐ซ ๐๐๐ซ๐ง๐ข๐ง๐ ๐% ๐๐ง๐ง๐ฎ๐๐ฅ๐ฅ๐ฒ, ๐๐๐ญ๐๐ซ:
5 years, your โฌ1,000 would grow to approximately โฌ1,276.
10 years, it would grow to โฌ1,629.
15 years, youโd have โฌ2,079.
20 years, your initial investment would grow to โฌ2,653.
๐๐จ๐ฐ๐๐ฏ๐๐ซ, ๐ข๐ ๐ญ๐ก๐ ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐จ๐ซ ๐๐๐ซ๐ง๐ฌ ๐๐% ๐๐ง๐ง๐ฎ๐๐ฅ๐ฅ๐ฒ, ๐๐๐ญ๐๐ซ:
5 years, your โฌ1,000 would become โฌ1,610.
10 years, it would rise to โฌ2,594.
15 years, you'd have โฌ4,177.
After 20 years, you'd end up with โฌ6,727.
๐๐จ๐ฐ, ๐๐จ๐ง๐ฌ๐ข๐๐๐ซ ๐๐จ๐ฉ๐ฒ๐ข๐ง๐ ๐๐ง ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐จ๐ซ ๐ฐ๐ก๐จ ๐๐๐ซ๐ง๐ฌ ๐๐% ๐๐ง๐ง๐ฎ๐๐ฅ๐ฅ๐ฒ. ๐๐๐ญ๐๐ซ:
5 years, your โฌ1,000 would grow to โฌ3,052.
In 10 years, youโd have โฌ9,313.
After 15 years, that would explode to โฌ28,422.
And in 20 years, your portfolio would reach โฌ86,736.
๐ ๐ข๐ง๐๐ฅ๐ฅ๐ฒ, ๐ข๐ ๐ฒ๐จ๐ฎ ๐๐จ๐ฉ๐ฒ ๐๐ง ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐จ๐ซ ๐ฐ๐ข๐ญ๐ก ๐๐ง ๐๐ฑ๐ญ๐ซ๐๐จ๐ซ๐๐ข๐ง๐๐ซ๐ฒ ๐๐% ๐๐ง๐ง๐ฎ๐๐ฅ ๐ซ๐๐ญ๐ฎ๐ซ๐ง, ๐ญ๐ก๐ ๐ซ๐๐ฌ๐ฎ๐ฅ๐ญ๐ฌ ๐๐ซ๐ ๐๐ฏ๐๐ง ๐ฆ๐จ๐ซ๐ ๐ข๐ฆ๐ฉ๐ซ๐๐ฌ๐ฌ๐ข๐ฏ๐. ๐๐๐ญ๐๐ซ:
5 years, your โฌ1,000 turns into โฌ7,594.
After 10 years, it skyrockets to โฌ57,665.
In 15 years, youโd be sitting on โฌ437,894.
๐๐ง๐ ๐๐๐ญ๐๐ซ ๐๐ ๐ฒ๐๐๐ซ๐ฌ, ๐ฒ๐จ๐ฎ๐ซ ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ ๐ฐ๐จ๐ฎ๐ฅ๐ ๐ ๐ซ๐จ๐ฐ ๐ญ๐จ ๐๐ง ๐๐ฌ๐ญ๐จ๐ฎ๐ง๐๐ข๐ง๐ โฌ๐,๐๐๐,๐๐๐!
๐๐ก๐๐ญ'๐ฌ ๐ ๐ฌ๐ญ๐๐ ๐ ๐๐ซ๐ข๐ง๐ ๐.๐ ๐ฆ๐ข๐ฅ๐ฅ๐ข๐จ๐ง๐ฌ ๐๐ญ ๐๐% ๐๐ ๐,๐๐๐ ๐๐๐ ๐๐ญ ๐%!
The numbers speak for themselves. While a 5% return can help your money grow steadily, copying an investor who achieves 25% or 50% per year can turn a modest initial investment into life-changing wealth over time.
Compound interest rewards patience and consistency. The longer you stay invested with the right strategy, the more you benefit.
Now, some of you might be thinking, โSure, but it all comes down to risk.โ And you're absolutely right! Understanding risk is essential when evaluating any investor's performance. That's why, if you want to measure the risk-adjusted performance of any investor on eToro, I recommend visiting www.bullaware.com/etoro. Just enter the investor's name, and youโll get all the relevant metrics, already adjusted to take risk into account. This way, you can make informed decisions, balancing both returns and risk levels.
You can find me here: bullaware.com/etoro/Matteospaggiari
Which investor are you choosing to copy today?
All the best
Matteo
$NVDA (NVIDIA Corporation)$GOOGL (Alphabet Inc Class A)$META (Meta Platforms Inc)$BTC$TSLA (Tesla Motors, Inc.)
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Except there is nobody on earth with an annual MWR 50% over any reasonable period.
Because you would compound fast enough to be worth the entire value of the united states with just a meagre 20k starting value.
There might be TWR though.... Show More
3 replies
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Thu Dec 05 2024 00:03:55 GMT+0000 (Coordinated Universal Time)