This is When The Dividend Snowball Takes Off

My Portfolio:   / dividendbull  

Over the past year or so l've noticed there's been a really popular trend within the finance sector of YouTube. A lot of content creators are talking about the importance of reaching $100,000 worth of investments in your stock portfolio, and how this has some kind of significance when it comes to acquiring even more wealth. Some examples would include "Why Net Worth Goes Crazy after $100k" and "The Hardest and Most Important Investing Milestone: The First $100,000". The main source for a lot of these videos comes from an old Berkshire Hathaway shareholder meeting that took place back in the 90s. While on stage, Charlie Munger once made the following statement about reaching 100k.

He said “You gotta do it, I don’t care what you have to do. "If it means cutting back on non-essentials and prioritizing savings, find a way to reach $100,000.” Many of these videos indicate that, once you save up this much money, you’re gonna find it much easier to get to $200,000, $300,000 and so on. And for the most part, this is true and genuinely great advice. Your investments will snowball much much bigger and faster the more money you have invested. There’s nothing magical or supernatural about it, it’s simply the law the compounding interest that comes into play. The longer you remain invested in the market, the faster your money will grow.