The table below is fascinating, because it shows the jaw-dropping power of compound interest (as well as how much a different a small percentage makes over the long haul). The top performing stock over 30 years from the S&P 500, AMZN, had an annualized return of 33.6% whereas Microsoft, another mega-tech giant, provided 20.3%. Both excellent returns, right? The difference is that, over the past 30 years, $10,000 would have grown to $2.5 million with MSFT but $24 million with AMZN!
You can experiment yourself with “what if?” scenarios like this with this free page on Slope.
