The Glossary

Markets

Compounding

Growth stacking on top of previous growth.

In plain language

When what you own grows, that growth starts growing too. $1,000 that gains 7% becomes $1,070 — and next year the 7% works on the larger number.

Why it matters

It is the only reason a paused $350 purchase can matter thirty years later.

Put it to work

Own more. Owe less.

Every word here shows up in a real decision. Run your own number, or get the next one in The Letter.

Related words