Albert Einstein was, of course, a physicist.
He is, however, often credited with a statements about the power of compound interest. Unfortunately a lot of people who have attempted tp find any proof that he ever said or wrote any of the statements frequently attributed to him have been unable to do so. The earliest attribution of any variant of the quote which anyone has been able to trace was in the New York Times in 1983, and Einstein died in 1955.
So to say the least, it is not confirmed that Albert Einstein ever said
"Compound interest is the most powerful force in the universe"
or
“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”
or even some variant on
"Compound interest, not E = M C squared, is the most important mathematical discovery of all time."
But even if Albert Einstein never said any of these things, it is true that compound interest, if continued for long enough to allow the real value of an investment to double repeatedly (which usually means decades, can have trly dramatic effects.
Unfortunately the same is true of negative real interest rates ... (see next post)
He is, however, often credited with a statements about the power of compound interest. Unfortunately a lot of people who have attempted tp find any proof that he ever said or wrote any of the statements frequently attributed to him have been unable to do so. The earliest attribution of any variant of the quote which anyone has been able to trace was in the New York Times in 1983, and Einstein died in 1955.
So to say the least, it is not confirmed that Albert Einstein ever said
"Compound interest is the most powerful force in the universe"
or
“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”
or even some variant on
"Compound interest, not E = M C squared, is the most important mathematical discovery of all time."
But even if Albert Einstein never said any of these things, it is true that compound interest, if continued for long enough to allow the real value of an investment to double repeatedly (which usually means decades, can have trly dramatic effects.
Unfortunately the same is true of negative real interest rates ... (see next post)
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