Are stock market really compound interest?

[Wid]

I just realized that Stock is only compound in value but your money only appreciate in value. The compounding machine only works on "interest on interest" or "earning on earning" (ex : dividend reinvestment), That means you must sell your stock first and moved that profit to another good stock investment, which that means investing regulary every month into s&p500 or a Mutual Fund based on "Compound Interest Calculator" is a blatantly a lie.

MJ right, Compound interest became very efficient when you already had large amount money already invested.

 

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[ravn]

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