The Power of Compound Interest

 

The Power of Compound Interest

Case: Netflix $NFLX



Netflix $NFLX has outperformed the market over the past 10 years by 30.96% on an annualized basis.

Buying KES 100K in $NFLX: 10 years ago, an investor could have purchased 75.54 shares of Netflix at the time. This investment in $NFLX would have produced an average annual return of 44.09%. If you had invested KES 100K in Netflix, you would have over KES 4 Million today.

Finally, what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.

How to Grow Rich with The Power of Compounding

Join Olympus Financials for more insights and links

Comments

Post a Comment

Popular posts from this blog

Investing: How to Pick Money-Making Stocks (Screening)

Image
Investing: How to Pick Money-Making Stocks (Screening) The process of choosing stocks is not an easy task. There are so many factors to consider and it can be hard to find the right stocks to buy. However, with a few steps and basic filters, you can effectively reduce thousands of choices to a qualified short list of stocks that meet your specific criteria while aligning with broader market trends. The first step in the process is defining what you want from your investment portfolio. This will help you define your criteria for selecting stocks. The next step is considering what type of investor you are and what kind of risk tolerance you have. This will help determine how much money should be invested in each stock, where it should be invested, and how long the investment should last for. There are two common ways to sort and pick stocks; Fundamental and technical analysis. Knowing how and when to use them can be a matter of personal style, but each has its strengths. Fundamental ...
Read more
Image
IS THE DOLLAR DEAD?  UNVEILING THE SURPRISING FACTORS THAT AFFECT THE ALL-POWERFUL KING DOLLAR.  For years, the US dollar has reigned supreme as the world's dominant currency. But recent events have sparked questions about the future of the mighty greenback. Is the dollar dead? Or is its throne safe for the foreseeable future? In this article, we'll take a closer look at the factors that determine the value of the dollar and explore what the future may hold for this iconic currency.   Fundamental Analysis   Fundamental analysis involves examining the economic and political factors that affect the value of the dollar. Some of the key factors include inflation rates, interest rates, trade policies, geopolitical events, and the strength of the US economy relative to other countries.   When the Federal Reserve Increases Interest Rates , the dollar becomes more attractive to investors seeking higher returns. This can lead to an increase in the value of the do...
Read more

BONDS

Image
BONDS Introduction Bonds are debt securities issued by corporations, governments, or other organizations & sold to investors Bonds are massive loans & as such requires these organizations to borrow money from more than one source. Investors buy small units of this debt. Types of Bonds They vary depending on who issues them, length until maturity, interest rate, & risk Government bonds/Treasury Bonds(T-bonds Bills - a year or less to maturity Notes - 1 to 10 years to maturity Bonds - More than 10 years to maturity TIPS are Treasury bonds that protect against inflation Municipal bonds The safest are Bills, but pay the least interest, while Bonds are less risky than other bonds but with higher interest. These are issued by cities & localities & are a bit riskier than Government Bond Corporate bonds These are issued by companies & have more risk than Government Bonds. Companies prefer bonds over Bank loans because of low interest. Bonds are either publicly traded on...
Read more