Being on the right side of compounding means positioning investments so that time works for them, rather than against them. When investments are positioned properly, each passing day adds to their value, free from taxes and inflation. More than 2,000 years ago the philosopher Aristotle explained that the secret of success in anything was habit . To him it was the crucial ingredient of all genius. And it was nothing more than a recognition of the concept of compound interest applied to life itself.
All progress is made by small increments compounding over time.
A great thinker thinks hard for a long time and, over time, comes up with great thoughts. A great builder lays one brick at a time and, over time, builds great monuments. A great artist works day after day and, over time, produces great works of art. The idea of building wealth over time has a kind of tedious ring to it, but it leaves out the entire power of compounding. With compounding, time adds to value.