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Compound Interest

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The rich get richer and the poor get poorer-and it seems that compound interest would virtually guarantee it! Not so, according to investment counselor David Dreman. Writing in Forbes magazine, Dreman noted that most large fortunes diminish and sometimes disappear in only two or three generations. He observed, "Why most nest eggs dissipate over time is a major problem...?

Today in the Word, MBI, April, 1990, p. 9

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