“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. If over a meaningful period of time, Buffett Partnership can achieve an edge of even a modest number of percentage points over the major investment media, its function will be fulfilled” Warren Buffett, Partnership Letter 1964

"Over time, a two-percentage-point advantage makes a huge difference to returns." Ralph Wanger

“**Compounding **is the magic of investing” Jim Rogers

"The effects of **compounding** even moderate returns over many years are compelling, if not downright mind boggling" Seth Klarman

“Understanding both the power of **compound** interest and the difficulty of getting it is the heart and soul of understanding a lot of things” Charlie Munger

“Long-term **compounding** is an investor’s best friend, so why get in its way” Guy Spier

"**Compound **interest, described in a phrase of disputed origin, is "the eighth wonder of the world". Wonder or trick, it has build great fortunes, and you can use it to get richer" Ed Thorp

"The sooner you start, the more **compounding **can do for you. If, beginning at the age of twenty, you sock away just $100 a month in stocks, and your portfolio **compounds **at 10%, which is what stocks have provided historically, you will be a millionaire when you retire at sixty-five" Ralph Wanger

"A mere 3% annualised edge will produce a 2.4-fold advantage over a 30 year period - the salient lesson that **compounding **teaches - the power of a long runway" Allan Mecham

"**Compounding **is one of my favorite words. **Compounding** is powerful. Warren Buffett did not become one of the wealthiest men in the world by suddenly striking gold in a single highly successful investment, but rather by compounding the value of Berkshire Hathaway at a 20 percent or so rate for 45 years. If an investor can achieve an average annual return of 20 percent, then, after 45 years, an initial investment of $1 million will appreciate to $3.6 billion. Wow! " Ed Wachenheim

"All I know is that if you can end up with a 20% track record over a longer period of time, the **compound** rates of return are such that the amounts are staggering" Peter Cundill

“Einstein called **compounding** the eighth wonder of the world and our mission is to harness this dynamic for our investors benefit." Christopher Begg

“The tyranny of negative **compounding** returns maybe the hardest lesson that far too many investors never master” David Rolfe

"Over the years a lot of very smart people have learned the hard way that a long string of impressive numbers **multiplied **by a singe zero always equals zero. That is not an equation whose effects I would like to experience personally, and I would like even less to be responsible for imposing its penalties upon others" Warren Buffett

"In business and also investment, success is measured through the **compounding** of a series of returns. Mathematically, the biggest risk to a **compounded** series of returns is large negative numbers or even a single negative number, if large enough. Take however many spectacular annual outcomes and multiply them by just one zero and the answer is of course, zero" Marathon Asset Management

“And never forget that** anything times **zero is zero. No matter how many winners you’ve got, if you either leverage too much or do anything that gives you the chance of having a zero in there, it’ll all turn to pumpkins and mice” Warren Buffett

"Striving for sustained, uninterrupted **compounding** over long periods of time is smart investing, and that’s precisely our goal. Many people think of us as a “value investor” and others ask whether we are a value or a growth investor. We’ve started to say, we’re neither, we are a **compounding** investor." Chuck Akre

"It's hard to believe that over the last 100 years the S&P 500 rose** 273-fold**, but adjusted for dividends it rose **18,520-fold**." Morgan Housel

"The great thing about **compounding **is that in order for it to be a thousand bagger it was only a five hundred bagger just halfway before there, and a 250 bagger and so on" Chuck Akre

"I usually ask my friends this question: Which would you rather have, $750,000 today or the outcome of doubling a penny a day for 30 days. What do I hear? Penny. So that's the question. **Compounding** our capital is what we're after, that's what makes it a great investment for us. What's the value of **compounding**? Well the answer in this case is simply astounding. Double a penny a day for 30 days gets you, who knows, $10 million, $737,000 change" Chuck Akre

"**Compounding **should be the overarching mission of investing activities for capital with a multi-year time horizon" Christopher Begg

"Consider the Indians of Manhattan, who in 1626 sold all their real estate to a group of immigrants for $24 in trinkets and beads. For 362 years the Indians have been the subjects of cruel jokes because of it - but it turns out they may have made a better deal than the buyers who got the island. At 8 percent interest on $24 (note: let's suspend our disbelief and assume they converted the trinkets to cash) **compounded **over all those years, the Indians would have built up a net worth just short of $30 trillion, while the latest tax records from the Borough of Manhattan show the real estate to be worth only $28.1 billion. Give Manhattan the benefit of the doubt: that $28.1 billion is the assessed value, and for all anybody knows it may be worth twice that on the open market. Either way, the Indians could be ahead by $29 trillion and change.. What a difference a couple of percentage point can make, **compounded** over three centuries" Peter Lynch

"Over a sufficiently long time, **compound growth** at a small rate will vastly exceed any rate of arithmetic growth, no matter how large! For instance if, Sam Scared made 100% a year and put it in a sock and Charlie Compounder made only 1% a year but reinvested it, Charlie's wealth would eventually exceed Sam's by as much as you please. This is true even if Sam started with far more than Charlie, even $1 billion to Charlie's $1."Ed Thorp