A savings account in which interest was reinvested would achieve the same year-by-year increase in earnings—and, at only 8% interest, would quadruple its annual earnings in 18 years.
Buffet highlights that companies will often not look at the main cause of growth, and may overlook the simple fact that a companie's growth may simply be attributed to retained earnkngs and compound interest. Reinvesting interest year after year.
