The benefits of compound interest come from holding investments for the long run. $1,000 compounding at 9% a year (which is around the long-term market average) for 10 years turns into just over $2,367. Not bad. But that same $1,000 compounding at 9% a year for 40 years turns into $31,409, showing the benefits of compounding money over decades.
The best way to make sure compounding does the work for you is to buy and hold quality businesses. Three stocks that you can buy and hold forever are Alphabet (NASDAQ: GOOG) , Boston Omaha (NASDAQ: BOMN) , and Constellation Software (OTC: CNSWF) . Here's why.
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For further details see:
3 Stocks You Can Buy and Hold Forever