This is how your money grows: compounding, doubling times and the rule of 70 (Part 2)

Chapter 4 (part 2) of "Getting a Better Class of Enemy", my investment book

This is Part 2 of Chapter 4. Part 1 has been emailed to paid subscribers, and can also be found at this link.

As always, feedback from readers is encouraged.

Please send emails to ofwealth@substack.com

Getting the most out of doubling times

A doubling time, as the name suggests, is how long it takes for something to double in size. For example, an initial investment of $100, with a doubling time of ten years, will turn into $200 after a decade.

Below is a graph that shows the relationship between annual rates of return on the horizontal axis, from 1% to 20%, and the respective doubling times on the vertical axis, measured in years.