Compounding is a powerful investing principle where earnings from an investment generate their own earnings over time. Einstein is famously quoted as saying, "Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it." This "interest on interest" can cause wealth to grow exponentially, especially with long-term investments. The key is starting early, even small, regular investments can become significant due to compounding's snowball effect. This principle of financial growth is not reserved for the extraordinarily wealthy or financial experts alone, it's accessible to anyone willing to embrace the discipline of saving and the wisdom of investing. One exemplar of this principle in action was Ronald Read, a janitor from Vermont.
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Ronald Read, a janitor from Vermont, shocked everyone when his secret $8 million fortune was revealed after his death in 2014. His friends and family had no idea about his wealth. He lived an incredibly modest life, driving an old Toyota Yaris and wearing a coat held together by safety pins. Many of his friends thought he was struggling financially, often doing small favors for him, like knitting hats or paying for his meals. Read built his fortune through frugality and smart long-term investing. He spent very little and quietly invested in blue-chip stocks, holding them for decades. His investments in companies like Procter & Gamble, AT&T, and Wells Fargo grew steadily over time, but he never flaunted his wealth. After his passing, he left significant portions of his estate to local institutions like the Brattleboro Memorial Hospital and Brooks Memorial Library, surprising the entire community​. 
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Ronald Read's story is a perfect example of how humble living and patient investing can quietly transform a life. Despite his unassuming character and frugal habits, he was able to build a fortune through smart, consistent investments over decades. His story shows that you don’t need to be a financial expert or live extravagantly to harness the power of investing. By living simply and sticking to what he knew—dividend-paying stocks—Read demonstrated that even the most unassuming individuals can achieve extraordinary financial success, proving that true wealth is often built quietly and over time​.