Charlie Munger’s first rule of compounding is to never interrupt it unnecessarily. Because of the way compounding works over time, to prematurely interrupt it (e.g. selling your shares or stopping to contribute) will forgo the largest upside—most compounding interest benefits occur at the end.
See also:
- Naval Ravikant talks about things that compound over time extensively
Links to this note
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How to Live an Asymmetric Life (Literature Notes)
In How to Live an Asymmetric Life, Graham Weaver talks about how to confront fear and get the most out of your life to a class of soon-to-be business school graduates.
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The more consistent something is, the more potent it becomes. It might sound boring to say the same things over and over again, but it leads to better results. Said another way, it’s difficult to get anything of value by being inconsistent.
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Fragility Is the Acceleration of Harm
The definition of fragility (and its inverse antifragility) is the acceleration of harm. For example, if you plot speed of a glass cup hitting the floor and amount of harm to it, the curve rapidly accelerates as the speed goes up. Fragile things are harmed by disorder and stress.