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.”
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.
Beware diminishing returns.
Themes
Mood
Type
When to use this quote
- investment strategy
- portfolio management
- wealth planning
- risk assessment
Key Concepts
Questions to Reflect On
- How do you adjust for diminishing returns?
- What alternatives exist to compound growth?
Market conditions can change unexpectedly.