“Compound interest is the 8th wonder of the world. He who understands it earns it. He who doesn’t pays it.” — Attributed to Albert Einstein The quote above has often been attributed to Albert Einstein although there is some controversy regarding whether
Earlier this week, we highlighted the power of compounding in an article on the rapid appreciation of the first Superman comic book. An equally dramatic example was recently published regarding Grace Groner, a 100 year old woman who recently died and left $7 million to her alma matter. The source of the funds? A $180 investment in Abbott Laboratories made in 1935. Read this article for more details.
The dwindling number of kids who still collect comic books have another reason to persist in the hobby after news that the first Superman comic book recently sold for a record $1 million. Of course, a combination of rarity and preservation is what delivered the big payday and few other books are likely to be worth anything close to $1 million. Furthermore, trying to get rich by purchasing collectibles is not generally the best path to wealth. What this story does illustrate is the massive power of compound interest and the opportunity to convey this information to young people effectively. Read this article for more details.