2nd Chance Properties

[nathanmaloney]

I agree with your point about dividends - you should definitely reinvest your dividends.

But the compounding effect is stronger if you realize capital appreciation along with reinvested dividends.

That was my point, maybe my I didn't make myself clear enough.

Gains cannot be compounded unless they are realized.

I don't agree fully with this statement. You can still compound your gains if you choose to reinvest your dividends, or by choosing scrip dividend scheme for a Company. There is no need to "realize" the gain in order to compound it.