World-renowned investor, Warren Buffett, bought his first stock at the tender age of 11…

But apparently, he regrets not starting earlier.

Source: Giphy

This may come as a surprise for the beginner investor. 

But since Buffett understands the power of long-term investing, he realised that he has missed out on the compounding effect by not starting way earlier. 

Beauty Of Investing Early

Physicist Albert Einstein once said that compound interest is the eighth wonder of the world.

What’s compound interest?

It’s simply the interest that accumulates on your initial capital and the accrued interest thereafter.

Compound interest allows a principal amount to grow at a quicker rate than simple interest. It’s like interest on steroids

For example, the table below shows how a $100 investment that earns 6% per year on a compounded basis grows:

YearAmount at the beginning of the yearInterest for the yearAmount at the