We all underestimate the impacts of compounding. Any non-linear process is incredibly hard for normal people to instinctively grok. It’s crazy to think that Warren Buffett didn’t first become a billionaire until he was in his 60s, but in his late 80s is worth north of $70bn.
So what’s the solution? I’m not sure, but I’ve got a good idea:
- Spend a lot of time investigating things that might possibly lead to non-linear returns. Talk to people older than you that you admire, read widely, and try to figure out what you should be doing.
- Put in place habits and routines to operationalise the things you identified in step 1.
- Trust the process for 5-10 years. Forget about results entirely–the score will take care of itself.