“The first rule of compounding is to never interrupt it unnecessarily”
— Charlie Munger
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Simplified Meaning:
When something grows over time by building on what is already there, it’s called compounding. Imagine saving money in a bank account that earns interest. If you let the money stay in the account, the interest you earn starts to earn its own interest too. This means your total amount grows faster and faster. If you take out the money too soon, you stop this snowball effect. It’s like planting a seed and constantly digging it up before it fully grows - you never get a big, strong tree. Similarly, in life, we should be patient and not disrupt things that take time to build, whether it’s investments, learning a new skill, or building habits. Consistency and patience lead to bigger rewards in the long run.
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