A recent Wall Street Journal article on Warren Buffett turning 90, mentioned that a much younger Buffett was repeatedly heard saying “Do I really want to spend $300,000 for this haircut?”. This may be an attention grabbing headline, but this rudimentary and somewhat extreme example shows how Buffett would analyse the future compounded value of spending (even a couple of dollars) rather than consider whether a product or service is cheap or expensive at the time.
The compound investment principles are something which may be well understood in theory but can always be further reinforced. This book, The Joys of Compounding by Gautum Baid, does just this. Gautum Baid is a successful investment professional and his book is easy to understand and could provide benefit to any investor through learning or relearning the principles of compounding. The Joys of Compounding draws on examples from many of the investment gurus in conjunction with Baid’s own experiences. Perhaps most relevant is that compounding is not just applicable to investing in equity markets, but to also many aspects of life.