Compounding
Money growing at a steady rate doubles on a fixed schedule, and each doubling adds more than every doubling before it combined. Intuition extrapolates the flat early years in a straight line and misprices the vertical ones. The operational consequence is to treat fees, taxes and interruptions as attacks on the exponent rather than on the balance.
6 books · 10 people behind it · 4 resources
Start here
- The Psychology of MoneyMorgan Housel, 2020
- 100 BaggersChristopher W. Mayer, 2015
- The SnowballAlice Schroeder, 2008
The people behind it 10
Each person holds a book in this entry or names it in their own tags.
Investors 5
Warren Buffett1 book hereCM
Christopher Mayernamed in their tagsPL
Philip L. Carretnamed in their tagsCA
Chuck Akrenamed in their tagsTG
Thomas Gaynernamed in their tagsExecutives 1
Academics 1
Journalists 3
Resources 4
- Compounding KnowledgeShane Parrish · essay · Why the curve of learning bends late, like capital.
- The Buffett Formula: Going to Bed SmarterShane Parrish · essay · Compounding applied to knowledge, not just capital.
- Selling OutHoward Marks · memo · Why interrupting compounding usually costs more than it saves.
- Getting Wealthy vs. Staying WealthyMorgan Housel · essay · Survival is the precondition for compounding.
