قوة الفائدة المركبة في الاستثمارات الطويلة الأجل

When John C. Bogle talks about compound interest, he refers to the process where investment returns become part of the initial capital and start generating additional returns. For example, if you invest a small amount in your twenties, the initial returns earned from this investment will be reinvested to generate new returns, and so on. Over time, these additional returns become significant due to the compounding effect.

To illustrate further, let’s assume you invest $1000 with a fixed annual return rate of 7%. At the end of the first year, you will earn $70 as a return, making your total investment $1070. In the following year, the returns will not be calculated on just $1000 but on $1070, increasing the return value for the subsequent year. With the growth of capital and resulting returns over the years, the effects of this gradual accumulation become truly remarkable.

What makes compound interest even more powerful is the element of time. The earlier you start investing, the more time capital has to grow and multiply. Therefore, small investments made at an early age can lead to significant amounts over an individual’s lifetime. This is why Bogle emphasizes starting investments early and leveraging the potent forces of compound interest.

Bogle’s advice should serve as inspiration for young people to realize the importance of saving and early investment. Even if the amounts are small initially, patience and discipline will enable them to achieve substantial financial growth over time. The key to success lies in starting early and wisely saving and investing money, fully harnessing the power of compound interest.