Compounding works like gravity - slow to notice, impossible to stop (if you let it run). The first $100,000 is where the snowball gets big enough to roll on its own.
Interesting how one can often multiply one’s own weight without realizing it. I’m curious, what’s the first small thing you suggest someone subtract when they notice they’re compounding?
Well, the best way to avoid disrupting compounding is to keep investments working. We all have the urge to “sell” when stocks move down. But this is instinct to avoid pain, is an emotional reaction. Instead successful investors pause and stop themselves, unless they have a rational basis for pulling money out.
Thank you for this lesson.
Interesting how one can often multiply one’s own weight without realizing it. I’m curious, what’s the first small thing you suggest someone subtract when they notice they’re compounding?
Well, the best way to avoid disrupting compounding is to keep investments working. We all have the urge to “sell” when stocks move down. But this is instinct to avoid pain, is an emotional reaction. Instead successful investors pause and stop themselves, unless they have a rational basis for pulling money out.