Course 111: Exploit the Magic of Compounding
The 0% Loan
In this course
1 Introduction
2 Keeping Costs Down
3 The Tax Man
4 The 0% Loan


Think of it this way: Suppose you were offered a loan at 0% interest and told you could pay it back eventually, but only when you choose. Until then, you could use the money in any way you wanted. Would you take that loan?

Of course you would--you'd be a fool not to. Well, guess what? Both your stockbroker and Uncle Sam are offering you this deal every day. When you hold a stock for a long period of time and its value compounds, you're really getting a no-interest loan that you only have to pay when you sell the stock at a time and price of your choosing. What a deal!

All things considered, the mathematical benefits of being a long-term investor are just too big to ignore. It's no coincidence that most of today's accomplished investors think of the stocks they own in terms of years, not days.

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