It’s essential for investors to appreciate the power of long-term compounding.

Albert Einstein called it “the eighth wonder of the world “. 

Commonly known as “the snowball effect”, compounding growth is the process in which a property’s gained capital growth generates its own return. This magnifies total investment return on both property’s initial value and the accumulated capital growth over time. 

This simple concept is considered one of the most powerful tools in the investment world. Once when asked how long one should hold his investment for, the legendary Warran Buffet replied : “My favorite holding period is forever.” 

Investing with compounding philosophy no doubt produces the best result in the long run.