Introduction to the Video
Compounding is one of the most powerful principles in investing and a key driver behind the accumulation of great fortunes. In this video, financial author and educator Andrew Craig explains the concept of compound interest and its transformative impact on wealth over time.
Using simple examples, Andrew breaks down how compounding works: earning a return on your return leads to exponential growth. To illustrate its potential, he shares a striking scenario where a £5,000 investment made at a child’s birth grows to nearly £1 million by their 55th birthday, assuming a 10% annual return.
The video emphasises the importance of starting early and staying invested, as the longer your money has to grow, the more significant the effects of compounding become. Whether you’re investing for yourself or setting up a financial future for a child, this video highlights how small, consistent actions can lead to extraordinary long-term outcomes.
Don’t wait to harness the power of compounding—start today and let time work in your favour.
Disclaimer: This video does not constitute financial advice. We recommend that you speak to a qualified financial planner for advice tailored to your individual circumstances and goals. Financial markets may go up or down, and you are not guaranteed a return on your investment. Past performance is not necessarily a guide to future performance.
