1/
Get a cup of coffee.
In this thread, I'll walk you through the benefits of turning capital quickly.
The math behind turning capital is beautiful. It leads us to the number "e", which plays a vital role in so many different fields -- from astrophysics to biology.
2/
Imagine we have $1M.
Also, we know an extraordinarily generous bank where we can deposit this $1M.
This bank will pay us interest. And not a paltry 1% or 2%, but a hefty *100%* per year!
(I know, I know. But humor me, will you?)
3/
So, if we deposit our $1M at this bank, it will earn that 100% interest and become $2M in 1 years' time.
But that's *only* if the interest is *compounded annually*.
4/
What if the interest is *not* compounded annually?
For example, suppose it's compounded half yearly?
"Compounded half yearly" means: instead of paying us 100% interest *once* a year, the bank pays us 50% interest *twice* a year (ie, once every 6 months).
5/
That is, we get to "turn" our money twice -- each time earning 50% on it.
Here's a quick picture of how that looks.
The first 6 months will turn $1M into $1.5M (ie, +50%). And the second 6 months will turn this $1.5M into $2.25M (another +50%).
