Something else Buffett understands is the beauty of compounding.Buffett ruminates,”$1,000 invested at 10% for 45 years grows to $72,800.At 20% the same $1,000 become $3,657,262.This difference strikes me as a significant difference that might conceivably arouse one’s curiosity.”

　　Albert Einstein once said : ” What is the greatest miracle known to man? Compounding ! ” And Bernard Baruch once said : ” Compounding is the eighth wonder of the world. ”

　　George Morgan’s example of compounding is this : ” You start a company by issuing 100 shares at $10/share. The company is now worth $ 1,000 ( equity ). During your first year, you make a $200 profit, which is equal to 20% of your comapny ( equity ). You put your profit back into the company and it is now worth $1,200 ( in equity ) . Next year , you experiencr an additional 20% return on equity which is now $240. This increases your total equity to $1,440. Do this for 79 years and the original investment ( equity of the shareholders ) of $1,000 is now worth ( equity ) $1.800,000,000.”

　　Ben Franklin once wrote of compounding: ” …its the stone that will turn all your lead inti gold …Remember that money is of a prolific generating nature. Money can beget money,and its offering can beget more. ”

　　As Sidney Homer says: ” A thousand dollars invested at just 8% for 400 years grow to $23 quadrillion. But the first 100 years are the hardest”

　　The compounding is crazy.. ( via. of Permanent Value The Story of Warren Buffett )