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== The Magic of Compound Growth == One of the secrets to making money in the stock market is the magic of compound growth. When your investments earn returns, and those returns earn returns, your wealth can grow exponentially over time. The earlier you start, the more time you have for compounding to work its magic. === Example: The 10% Rule === Let’s say you invest $10,000 in a diversified portfolio that earns an average annual return of 10%. After 30 years, thanks to compound growth, your initial investment would grow to nearly $175,000. That’s the power of letting your money work for you.
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