Compounding on the market

Hey all,

Pretty new to investing and I have read a bit about compounding dividends to help our money grow. However my question is in regards to non-dividend paying stock and if it is possible to compound?

Do people after a period of time - or percentage increase - sell their profits to immediately reinvest? Or would there be no difference in just leaving it as profit?

Many thanks,


If no dividend is paid, the compounding happens inside the business. Same with accumulating ETFs.

Thanks for the reply :slight_smile: So buy and hold, no need to sell profits to reinvest back in, that’ll be wasted time?

Kind regards


Yes, that would not make any sense.

1 Like

haha thanks for clearing that up for me.

all the best,