Compound interest is when the interest you earn on your balance savings or investing account is reinvested, resulting in you earning more interest. This compounding effect results in your savings/investments increasing exponentially.
Albert Einstein, one said “Compound interest is the eighth wonder of the world. He who understands it earns it, he who doesn’t, pays it.”
To make compounding work for you it is important to remember a few factors:
1) It takes time. Compounding works wonders when you have the power of time. This is because as the interest you earn starts to accumulate and gets reinvested your interests increases. It requires a few cycles for this machine to start, so start early.
2) Don’t interrupt the process. One of the biggest mistakes people tend to make is to interrupt this compounding effect. The more you interrupt it the longer it will take to work, and it will be less effective.
3) Be consistent. In the early years of compounding, it will look like your account is not growing much and you must keep allocating more capital to it. This is normal and expected. But be consistent, if you have $120 to invest, do it over 12 months in $10 slabs. This ensures that you can ride out any volatility and take advantage of it. Then continue this process in the future years.
Bio Compounding was thus started by two passionate scientist-investors who believe that the upcoming Bio-Revolution could have a significant impact on our economy and our lives. These changes will be driven by advancements in biological sciences together with computing (AI, ML) and automation. This is likely to have an impact on offerings in healthcare, agriculture, consumer goods, materials, and energy.
We believe that the time is ripe for individuals to start dipping their toes into this sector and would love to share our opinions with anyone interested to compound their wealth with biology.
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