Quotes on Compound Return

Consistency and patience are crucial. Most investors are their own worst enemies. Endurance enables compounding.

Investment decisions should be made on the basis of the most probable compounding of after-tax net worth with minimum risk.

It is obvious that a variation of merely a few percentage points has an enormous effect on the success of a compounding (investment) program. It is also obvious that this effect mushrooms as the period lengthens.

Understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things.

Every basis point of return -- let alone every 100 basis points -- has a staggering difference in outcomes in the long run. That's why you stay focused on the long term and the rate of return; that is where the difference is, that is what you want and need to capture.

One of the tricks of this business is, keep your losses down and then, if you have a few good breaks, the compounding works well for you.

Understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things.