The conditions for compounding

Compounding needs an uninterrupted run more than it needs a great year. The conditions matter more than the picks.

• Investing
• Careers

2 ideas that carry it

• FrameworkInvestingBook

  A handful of outcomes carries a portfolio, and a career

  Results come from a few outcomes, so the job is to survive long enough to be there when they arrive.

  Position sizing, venture portfolio construction, and any moment of frustration that most of your effort seems to produce nothing.

  From The Psychology of Money · Morgan Housel

• LessonInvestingDocumentary

  Compounding needs an uninterrupted run more than it needs a good year

  Duration beats brilliance in compounding; arrange your life and portfolio so you are never forced to stop.

  Thinking about personal finance, about a long career, or about why survival matters more than any single year's return.

  From Becoming Warren Buffett · 2017