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Buffett believes in the power of compounding over time from "summary" of Warren Buffett's Ground Rules by Jeremy C. Miller
Warren Buffett's investment philosophy revolves around the concept of compounding over time. This principle is fundamental to his approach to investing and has been a key factor in his success. Buffett understands that the power of compounding lies in the ability of an asset to generate earnings, which are then reinvested to generate even more earnings in the future. By reinvesting profits instead of cashing out, an investor can benefit from the exponential growth that comes with compounding. Buffett's focus on compounding over time is based on the belief that the longer an asset is allowed to grow, the greater the potential returns. He emphasizes the importance of patience and disci...
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