The Daily Insider: Why Buffett calls compounding the Eighth Wonder of the World

This week it’s exactly seven years since we launched the BizNews Share portfolio with starting capital of $200,000 (R2.25m at the time). The intention was to help members of the BizNews tribe protect their wealth against the economic madness of ANC socialism and Zupta plunder by investing into shares of companies listed abroad.

Every month since then, I’ve hosted an interactive webinar updating the portfolio for BizNews Premium members. Because of its tight focus on Exponential Companies – and obvious Rand Hedge qualities – the portfolio has generated a compounded annual growth rate of 21.5% in US Dollars (27.7% in Rand).

Such is the power of compounding that the original stake has grown to $782,000 – and an even more impressive R12.4m in SA currency. Which illustrates why Warren Buffett calls compounding the Eighth Wonder of the World – and advises the average holding period for a share as “forever”. Click here to watch a recording of yesterday’s webinar.

If you prefer attending our webinars as they happen, we’ve got two for you today:

  • At noon colleague Tim Modise hosts the inventors of a home-grown immune booster that’s shown to be a boon in protecting against Covid-19 – SA’s former Statistician-General Dr Pali Lehohla will be on hand to share his analysis of the results. Participation is free but you must sign up beforehand. Click here to register.
  • And at 5pm today I’ll be joined by Martin Freeman and Justin Clarke from our business partners OrbVest. They’ll report back from a Texas seminar where they observed a the surge in investor interest in US medical properties – the sector where OrbVest specialises, offering co-investment in projects from $5 000. Open to all – register by clicking here.

To receive the Daily Insider every weekday at 6am in your inbox click here. You can also sign up to the weekend’s BizNews Digest for a wrap of the best content BizNews has to offer, for a leisurely Saturday read.

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