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May 6, 2025

The power of compounding

A quick recap of the last 50 years shows that there were ample subjects for equity investors to worry about and to stay awake at night. From Ukraine, Covid, Eurocrisis, GFC, 9/11 there were constant crisis and events affecting the financial markets. Notwithstanding this, 10,000 USD in the S&P 500 in 1970 are worth 2,991,671 USD in 2025. This is the power of compounding at work.

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