# Upstart UPST - 100% move? Rule of 72 accelerated?

Long
NASDAQ:UPST   Upstart Holdings, Inc.
Portfolio Builders Club advocates for all people to build a self-directed Investment portfolio in addition to any managed or corporate led investment portfolio they may have.
The energy that accelerates results is compounding. No matter how much you gain from each investment the macro goal is to repeatedly 2X(double), 3X, 4X... your initial portfolio value. No matter if you are using the rule of 72 with compounding to determine the number of years to double your investment.

(72/ annual rate of return = number of years to double)

The glitch in the matrix: With the rule of 72, if the rate of return is over 72%, the time to double your money is less than a year. Of course 72% is not a double. This points out that we can remove time from the equation if we are looking for higher rates of return. Therefore, the power of compounding is accelerated by looking at return on investment in terms of cycles, instead of years. The question is: how frequent can we complete each cycle? How many cycles will our risk tolerance allow us to complete over time? Do we have the patience to allow the compounding to work?

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Example of Macro Compounding
No matter how long it takes to complete a cycle based on your rate of return.

Double investment in each cycle (100% return with compounding)
Stage 1 Stage 2 Stage 3 Stage 4
Starting with \$125 \$1,250 \$12,500 \$125,000
Cycle 1 \$250 \$2,500 \$25,000 \$250,000
Cycle 2 \$500 \$5,000 \$50,000 \$500,000
Cycle 3 \$1,000 \$10,000 \$100,000 \$1,000,000

Mind blown yet? Let's go further. Start with the lower investment Stage. Use the compounding cycles in that stage to build up to the next starting point for the next stage.

Portfolio Builders Club