The Eighth Wonder is Pounding at Your Door

By: Baron Kimble | 2016-02-13

“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”

- Albert Einstein

Traders, investors, savers overlook one of the most important concepts in investing: compounding interest.  I say this, because regardless of what capital you have, compounding interest is by far the most important element in recognizing investing success.

To be quite frank, White Gem Capital is making amazing returns.  I have spoken to many investors, and some have passed, or decided not to invest for whatever reason.  This is equivalent to having money slip through your fingers, or being too lazy to pick up a $1000 bill you see in the corner.

But due to the science of compounding interest, it is the passage of time that is the most costly to the investor; this also makes the initial cost of capital is irrelevant, no matter how painful the initial sacrifice may be.  Time is the most valuable commodity when interest on interest is used.

For some reason, this I am reminded of this:

Coke-Cola went public in 1919 and sold for $40 a share.  Before that it was owned by the Candor Family they bought it for $2000 bucks the whole business in the 1880s in a few purchases.  So now he goes public in 1919 -- $40 a share.  One year later it is selling for $19.  Gone down 50% in one year, and you might think that is some kind of disaster.  You might think, sugar prices increased, the bottlers were rebellious, and a whole bunch of things.  You could always find a few reasons why that wasn’t the ideal moment to buy it.  Years later you would have seen the Great Depression, you would have seen World War II, you would have seen sugar rationing, and you’d seen thermonuclear weapons, the whole thing.  There’s always in a reason; but in the end if you would have bought one share for $40 and reinvested the dividends it would be worth about $5 million right now.  And that factor overrides anything else, and you’re right about the business, you’ll make a lot of money.

-Warren Buffett

For instance, I offered prospective investors and personal friends an opportunity to begin when the fund first started.  And I personally don’t condone irrational investing, which means investing within your own risk tolerance, and even then applying a pullback if you are over committing.  In other words, am I no way insisting you invest a majority of your capital in WGC. But failure to invest risk capital, or capital that you can afford to risk, that is the egregious error.

The glaring reality is:  There is no excuse why not to invest.

Opportunity knocked, and sometimes hit the door with a battling ram, and still the door was not answered.

It also makes a lot of sense given the asymmetry of the investment structure.  In fact, the returns are so good, you should be aggressively going out of your way to get into the investment, and not avoid it.

Also when I look at other traders who post annual returns or P&Ls, and in comparison, I am extremely proud to say I do not trade for income, nor ever will.  I trade for capital creation.  Trading for income is for soft-minded and weak-handed players. I have not taken one dime out, nor probably ever will. I add, I don't subtract.  Why?  Because the returns are astronomical.  For every one dollar I take out now, could cost me hundreds, if not thousands of dollars in the long-term.  Time is the most valuable commodity.

Just recently, WGC surpassed a minor goal, which was to double the amount of money put into the fund upon inception. So every investor that passed, and lost basically a chance to double their money.

The reality is investing is extremely difficult. It requires an iron stomach, and a bulletproof mind. WGC does all the heavy lifting, and the returns are world-class and self-evident. If you want your house painted, you can do it yourself, or you can hire a painter. If you want your sink fixed, you can learn all about getting your sink fixed, or you can hire a plummer. If you want to make world class financial returns, you can try read all the books on investing, or you can hire our services.

It pains me when I see an investor say no for really any reason.  Because every moment, second, day, month, and year that passes, it costs them an insane amount of money.  Whatever the excuse was; that factor was overridden by anything else from the returns given.

I am looking for high net worth investors who are willing to invest the at least $100k. Contact me here.

Over the upcoming years it is going to be an interesting financial journey, and I want you to join me on this journey in becoming immensely richer.