Compounding Interest: Formulas and Examples
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Every time you sell an asset, you stop your own compounding. Most people think selling a stock or a house is a win. You cash out. You feel richer. But in reality — you’ve just killed your best-performing employee: time. Wealth isn’t built by selling appreciating assets. It’s built by holding, leveraging, and compounding them. The middle class sells to feel safe. The wealthy borrow to stay liquid. A stock portfolio? They use it as collateral. A property? They refinance, reinvest, and defer taxes
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