Magic of Compounding in LIFE | ये समझलो वरना हमेशा गरीब रह जाओगे
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We have already learned the power of compounding in investing in our old video. The power of compounding refers to the capacity of your investment to generate profit after profit on the profit that you’ve earned. So it generates profit not only on the original investment or the principal but also on the accumulated profit. Because of this simple concept, you get get very rich and get financial freedom very fast. Middleclass and poor people do not understand the magic or the power of compounding. But all the rich people understand the power of compounding in stock market, investing and also in life.

However, in this video, we’re not just going to explain the power of compounding in investing but also in life and you get create huge wealth and get rich by understanding the power of compounding in life.

We will understand the matthew effect which is similar to the compound interest effect. The example is taken from the book Outliers which is one of the best books on understanding how some people succeed and others don’t This book is recommended by Warren Buffett, Bill Gates and many other businessmen and successful investors.

Then we’ll understand the life story of legendary investor Charlie Munger who was the partner of Warren Buffett in his company Berkshire Hathaway. Charlie Munger was divorced at age 30 and lost everything. But still he achieve financial freedom was in his 40s and then become millionaire and also a billionaire in his lifetime. So he got very rich by undertanding the magic of longterm investing in stock (share market) and compounding in stock market and life.

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00:00 Compounding in Life
07:43 How To Benefit From It