Compounding on the market

First Time Investing 🐣
1

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,

Gabriel

2

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

3

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

Gabriel

4

Yes, that would not make any sense.

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5

haha thanks for clearing that up for me.

all the best,
Gabriel

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