Why Compounding Is So Powerful in Stocks
Unlike savings accounts, equities provide:
- Capital appreciation
- Dividends
- Business growth participation
- Inflation-beating returns
When quality businesses grow, your wealth compounds alongside them.
The Three Pillars of Compounding
1. Time in the Market
Starting early is more important than investing big.
2. Consistency
Regular investing (SIP or disciplined allocation) accelerates compounding.
3. Patience
Frequent buying and selling breaks compounding.
