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#195 Morgan Housel: Get Rich, Stay Rich

The Knowledge Project with Shane Parrish

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Maximizing Returns through Time and Endurance

Compounding math is counterintuitive but crucial. Compounding is ubiquitous in various aspects of life, not just finances. The power of compounding is best explained as growth fueling more growth over time, emphasizing the significance of duration rather than the initial amount. Achieving above-average results requires being average over an extended period. The key to compounding is maximizing time and endurance, as returns to the power of time drive substantial outcomes. While the investing industry focuses on increasing returns, the real leverage lies in endurance. Prioritizing endurance over short-term returns is crucial for long-term wealth building and success.

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