Exponential Growth is the least understood concept in finance. What does 8% return really mean? What is the difference between compound interest and simple interest? Ever wonder why banks usually charge compound interest when you borrow i.e. mortgages and credit cards but pay simple interest when they borrow from you i.e. putting your money in a bank account? This video although a bit dry for some, does an excellent job at explaining the impact of compound growth.
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Peter also manages his own multi-million dollar rental property real estate portfolio which he co-owns with investors. Unlike many financial advisors, Peter uses a global approach to investing and puts money where his mouth is by personally using many of the strategies he advises his clients on.Peter Merabian helps Canadian individuals and families by providing investment and tax saving strategies that help them achieve their financial goals sooner.
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I agree that Dr Bartlett’s lecture video is profound. I thought I understood compounding but not like this. Thanks for “re-opening” my eyes.
It not only helps me understand the underlying reality, and simple math, of how the home my parents bought for $30,000 when I started high school is today worth well over $3 million.
It also helped reinforce in my mind the fear of inflation which drives the European central banks (but not the current US Fed)