We are huge fans of compounding here at the Coffeehouse – it’s the gift that keeps on giving. During Thanksgiving, we discuss the best part of the “investment pie” and the advantages of holding your investments over the long haul.
Individuals who spend time selling stocks and mutual funds that go up in price are missing out on the largest piece of the money pie because they don’t give their investments a chance to sit there and do what they supposed to do – compound. There are two great examples in the Coffeehouse book on the power of reinvesting dividends over time. In the first example, 60% of the profit increase is due to compounding! Why would you ignore a piece of the pie like that?
Speaking of pie, we also enjoy eating a great pie. We want to share Bill’s pumpkin pie recipe from the book, enjoy! From our family to yours, Happy Thanksgiving.