Part 6/8:
Arguably the most critical point in my investment strategy revolves around the concept of compounding. Warren Buffett famously called compound interest the "eighth wonder of the world," and for good reason. By allowing investments to grow over time through reinvestment, the potential for wealth multiplication becomes evident.
For instance, an investment of $50,000 into the S&P 30 years ago, based on an average historical return of about 10%, could yield over a million dollars today. This aligns with my plan of investing consistently for the next 14 years. If the market performs around 7-10% annually, I could have about $2.3 million by the time I reach my 40s, and nearly $8 million by 50—a compelling case for patience and consistency.