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RE: TIL How Quincy, Florida Became A Town Of Coca-Cola Millionaires

in #til7 years ago

This is not an example of "compounding". This is an example of investing in a small company that got big.

Also, many people on Wall Street did the same thing, borrowing money to buy shares. And they lost big in the crash.
In this case, the banker saw that the stock's bankrupt value was worth more than the purchase price. Good fundamental analysis.
The same thing happened years later with IBM.

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This is exactly compounding. The difference of reinvesting dividends compared to not doing so. You can google 'compounding dividends' as there is no need to argue this.

Yes, this is one example of many smart investments throughout history. I will grant you that there is some survivor bias, but it is what we see.

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