We Study Billionaires - The Investor’s Podcast Network cover image

TIP608: Long-Term Compounding w/ Chris Mayer

We Study Billionaires - The Investor’s Podcast Network

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Investing Wisdom: Embrace Patience over Precision

Long-term investments should focus less on exact multiples and more on expected growth over time. Aiming for a substantial increase, such as a ninefold increase over ten years with a 25% CAGR, reveals that minor differences in trading multiples become less significant. Investors should consider starting small in companies they believe in, as opportunities to buy at preferable prices will arise. While it is important to avoid excessively high multiples, being overly cautious can lead to missed chances for investment. Hence, a balanced approach prioritizing long-term growth over immediate price perfection is essential.

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