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Compound interest Quote by Benjamin Graham

“Both a priori reasoning and experience teach us that as as these funds grow larger the geometrical rate of growth by compound interest ultimately defeats itself.” quote by Benjamin Graham
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“Both a priori reasoning and experience teach us that as as these funds grow larger the geometrical rate of growth by compound interest ultimately defeats itself.”

Benjamin Graham

About This Quote

Source Book: The Intelligent Investor, 1949, United States

Large funds grow faster, but compound interest eventually slows as growth becomes geometric and self‑defeating.

In simple terms: Compound interest slows as funds grow huge.

Key Takeaway

Beware diminishing returns.

Themes

finance economics growth

Mood

analytical cautious

Type

financial educational

When to use this quote

  • investment strategy
  • portfolio management
  • wealth planning
  • risk assessment

Key Concepts

compound interest geometric progression

Questions to Reflect On

  • How do you adjust for diminishing returns?
  • What alternatives exist to compound growth?
A Different Perspective

Market conditions can change unexpectedly.

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