Wealth can be compounded when passed from one generation to the next, also this process can create massive wealth when the same process of preserving and growing the wealth is implemented with time. But how many generations can wealth keep compounding ?
Very few businesses survive for more than a century , usually when the founder or the scion passes away almost 90-95% of the businesses see their fortunes dwindle with time. The primary reason being, that the founder would have built things from zero to one, whereas when the next generation inherits it, only the wealth is transferred whereby the knowledge or the experience isn’t. Keep in mind that wealth only compounds if knowledge compounds along with it.
The compounding of knowledge has to be given the same importance as much as creating wealth and this process can be passed on, by creating a value system which includes passing on the experience, the hardships that the primary owner of the business went through. There have been a few companies which have survived more than 2-3 centuries primarily because of this value system transfer.
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