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Mental model · Systems

Compounding

Compounding: Small repeated effects multiply rather than add, so time matters more than size.

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Small repeated effects multiply rather than add, so time matters more than size.

Try it now

Take a small habit you could do daily. Write honestly what it produces in a year, and what it produces in five.

What to do with the answer

Choose consistency over intensity for anything that compounds, and be clear about which of your efforts do not.

Where it misleads

Not everything compounds. Plenty of effort is linear or decays, and treating it as compounding is how people wait years for a return that was never coming.

The module it belongs to

  • Strategic Thinking — Think beyond the immediate next step

Previous: Goodhart’s law

Next: Emergence

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