Compounding is the Most Powerful Force in the Universe
Posted on December 8, 2008 Comments (3)
A talking head with some valuable info. I remember my father (a statistics professor) getting me to understand this as a small child (about 6 years old). The concept of growth and mathematical compounding is an important idea to understand as you think and learn about the world. It also is helpful so you understand that statistics don’t lie but ignorant people can draw false conclusions from limited data.
It is unclear if Einstein really said this but he is often quoted as saying “compounding is the most powerful force in the universe.” Whether he did or not, understanding this simple concept is a critical component of numeracy (literacy with numbers). Also quoted at times as: “Compound interest is the eighth wonder of the world.” My guess is that people just find the concept of compounding amazing and then attribute quotes about it to Einstein.
I strongly encourage you to watch at least the first 2 segments (a total of 15 minutes). And then take some time and think. Take some time to think about compounding in ways to help you internalize the concepts. You can also read his book: The Essential Exponential For the Future of Our Planet by Albert Bartlett.