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Reinvest dividends from "summary" of The Automatic Millionaire by David Bach
One of the most powerful wealth-building strategies is to automatically reinvest dividends. When you own stocks or mutual funds that pay dividends, you have the option to take those dividends in cash or automatically reinvest them to buy more shares. By choosing to reinvest dividends, you are essentially compounding your investment over time. This means that as you receive dividends, those earnings are reinvested back into your investment, allowing you to own more shares which can then produce more dividends. The beauty of this strategy lies in the principle of compound interest. As your investment grows with the reinvested dividends, the amount of dividends you receive also increases. This creates a snowball effect where your wealth can grow exponentially over time. It's like planting a seed, nurturing it, and...
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