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URL:  http://boards.fool.com/rms-vs-compounding-13341623.aspx

Subject:  RMs vs. Compounding Date:  9/21/2000  2:30 AM
Author:  neuronnorth Number:  245 of 265

As a relatively new investor and Fool, I've been teaching my teenage son about some of the lessons learned on TMF Boards. Reading Rich McCaffrey's essay on "Focusing on the Best" yesterday, I note his comment
"Overall, however, I
expect to beat the market by a few percentage points, and for
those gains to compound handsomely without the high costs of
churn."

I had told my son that RM investing doesn't capture the value of compounding interest or value in the same way a high-yield savings account would. But Rich's statement must imply it can, although I don't understand how.

Can anyone explain: how does RM investing encourage the advantages of compound interest gains that we older folks used to hear about as the path to wealth?
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