The transformative power of compounding is a central theme. Housel compares it to the cyclical nature of ice ages, where small changes lead to massive shifts over time. He emphasizes that Warren Buffett's immense wealth is due to his longevity in the market, allowing compounding to work its magic. 'The real key to his success is that he’s been a phenomenal investor for three quarters of a century,' Housel notes, highlighting the importance of starting early and being patient. | Morgan Housel | The Psychology of Money

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Finance

Power of Compounding

The transformative power of compounding is a central theme. Housel compares it to the cyclical nature of ice ages, where small changes lead to massive shifts over time. He emphasizes that Warren Buffett's immense wealth is due to his longevity in the market, allowing compounding to work its magic. 'The real key to his success is that he’s been a phenomenal investor for three quarters of a century,' Housel notes, highlighting the importance of starting early and being patient.

-- Morgan Housel