You have to beat inflation!

Inflation depreciates your purchasing power. Whereas compounding is often called the 8th wonder of the world for its magical ability to grow your money over the long run. It is important as an investor to understand the role of inflation in your investment process. Also investing for the long-term will make you understand the significance of compounding as well. You cannot create wealth without beating inflation by at least 2 times if not 3 times. So if inflation is 6% then your investment has to give you minimum 12% returns.