Let me teach you a little story about compound interest courtesy of my friend, the Chinese Bamboo Tree

Sit back and enjoy

(thread)

The Chinese Bamboo tree is a special tree

It’s not like any other tree in the world

It does something that other majority of other trees do not

Let me explain....

In the first year after tree is planted, there is no growth above the soil

Imagine your neighbor watering a tree for ONE FULL YEAR and it never sprouting... you’d think they are crazy

It gets better...

In year 2? No visible growth

Years 3 & 4? No visible growth either

So 4 years, and the tree has YET to grow above ground

But something CRAZY happens in year 5

...

In just 6 weeks, the Chinese Bamboo Tree grows 80 feet tall

For 5 years did the tree really do nothing just to sprout up at year 5?

NO

During those beginning years, the tree was building a strong foundation to HOLD itself for what was to come in the future

THAT is the Chinese Bamboo Tree

So what does this have to do with investing?

Well the Chinese Bamboo Tree is like compound interest

Compound interest is one of the most powerful things in the world

And not many people understand or USE it to their advantage

When you start investing, your first years will be slow!

Just like you thought your neighbor was crazy for watering a tree that hasn’t sprouted for 4 years...

When you start investing, people will call you crazy because “what’s $1 in dividends going to do?”

But you can’t listen to your friends or neighbors...

Just like the person with the Bamboo tree ,

Keep watering your investments by contributing each month

Keep reinvesting those dividends

Keep having faith that your finances will be better tomorrow than today

They don’t realize that you are building a solid foundation for your financial future

AND with due time, just like the Chinese Bamboo Tree , after many years, compound interest will be so powerful, that it will shoot up 80 feet in just 6 weeks

So when your friends call you crazy for investing, just remember the Chinese Bamboo Tree

Patience will get you to where you want to be!

I hope this thread helped a ton with your mindset on long term investing!

Thanks for reading

@DecadeInvestor