It’s one of the most powerful forces in investing.
Warren Buffett regularly cites it as the key to his $76 billion fortune…
And Albert Einstein himself reportedly said it’s “the eighth wonder of the world.”
I’m referring to an investing concept known as compound interest.
And today, I’ll show you how you could take advantage of it to build a massive portfolio — and earn big, quick returns!
Turn One Penny into $5 million
When I was eleven years old, my friend’s dad offered me a deal:
He’d give me $1,000…
And in exchange, I’d owe him a payment of one penny right away… and then a payment that doubled each day for the next 30 days.
$1,000 today versus a few pennies later? I jumped up to shake his hand. “I’ll take it!” I yelled.
He then showed me my mistake. You see, doubling a penny each day over the course of 30 days leads to enormous numbers…
On Day 30, I’d have owed him a staggering $5.3 million.
And this same concept is behind the power of compound interest.
Compound Interest in the Real World
Here’s how it works in the real world…
Over the long-term, the stock market returns an average of about 6% per year.
But investors like Warren Buffett have earned roughly 20% per year.
Here’s what that difference would mean for an investor like you…
In 1965, the year Buffett started his investment firm, let’s say you invested $1,000 into a portfolio of stocks, and $1,000 with Buffett.
Today, your $1,000 stock portfolio would be worth about $24,650…
But your “Buffett Portfolio” would be worth north of $22 million!
That’s what happens when you compound your money at higher rates.
And now, thanks to a new tech startup, there’s an easy way for you to take advantage of this “trick”…
Einstein Would Have Loved this App
The startup I’m referring to is called Snowball Money.
Snowball is aiming to disrupt the traditional banking and investing industries.
Essentially, it helps you grow your money at higher rates than you’d earn at a bank.
You see, a traditional bank accepts your deposits, and in exchange, pays you a small amount of interest. It then loans out your money to others at a higher interest rate than it pays you. That’s how it makes money for itself.
Accepting deposits and processing loans is expensive for banks, so they tend to pay low rates of interest. For example, Citibank pays just 0.03% to 0.04%.
But with Snowball, it’s a different story:
You see, Snowball doesn’t work with cash… instead, it works with crypto-currencies.
Because cryptos are more speculative, Snowball charges higher interest rates than banks.
Furthermore, because its business is 100% electronic, it’s much more efficient. That’s why the company can share more of its interest with you.
In fact, instead of earning far less than 1% at a traditional bank…
With a service like Snowball, you could potentially earn interest rates north of 10%!
Based on what you just learned about compound interest, which would you prefer?
But it Gets Even Better!
But here’s where this gets even more interesting…
Not only could you earn double-digit yields by shifting some of your savings to Snowball…
But this company could help you earn big returns in another way, too.
You see, Snowball is currently raising a funding round for its business. And for as little as about $100, you could claim a stake in it.
So if Snowball gets bought out in the future, you could earn even more profits.
But an investment like this doesn’t come without risks…
So, let’s quickly review some of the pros and the cons of an investment.
The Pros and the Cons
On the “pro” side:
- Crypto banking is a big, fast-growing market. It’s grown from $150 million in April 2018, to $1.2 billion in February 2020.
- Over 220,000 users have signed up for Snowball’s soon-to-be-announced launch.
- As cryptos go mainstream, this company could be a target for a takeover — which could lead its early investors to big, quick gains.
On the “con” side:
- Cryptos are still an “emerging” sector and can be volatile.
- Snowball isn’t a registered bank. So its deposits aren’t FDIC-insured.
- Since the product isn’t live yet, we don’t yet know exactly how it will perform.
How to Invest (and Protect) Yourself
To learn more, just click here »
And if you do decide to invest, please remember:
When it comes to startup investing, the key to success is diversification.
So, over time, be sure to invest small amounts into many different startups.
That way, even if some of your investments don’t work out as planned, you’ll still have plenty of chances to earn big returns!