How is it that people become rich when the best investments only give a 10% - 15% yearly?
If the best investments only get you 10% - 15% returns a year, how do people become rich from investing, am I missing something?
I think rich people get to achieve this primarily by practising the law of compounding. Quite true 15% does not seem like anything to be excited about but over time compounded it begins to make sense. And don’t forget that they also increase their investment size as time goes on so that equally makes the value of the 15% look pretty down the road.