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:

  1. 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.
  2. Put in place habits and routines to operationalise the things you identified in step 1.
  3. Trust the process for 5-10 years. Forget about results entirely–the score will take care of itself.

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