Compounding Fundamentals

This chart illustrates a fundamental principle of long-term investing: capital deployed earlier has more time to compound, which can lead to materially different outcomes over time. The visual comparison highlights how timing, not just discipline, influences the growth trajectory of invested capital. The example is conceptual and intended to support understanding of compounding dynamics rather than predict performance.

 

Early investment builds momentum. Capital put to work sooner compounds from a larger base, creating faster growth and more flexibility over time. Waiting to invest—relying mainly on savings and occasional gains—often means missing the most powerful phase of compounding