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Jonathan Clement's Blog: Compounding

FYI: AMES CLEAR, in his bestselling book Atomic Habits, offers this thought-provoking notion: Suppose a plane takes off from Los Angeles on its way to New York. But after taking off, the pilot turns the nose of the plane by an almost imperceptible 89 inches. Where will the plane end up? The answer: nowhere near New York. As it flies across the country, that 89-inch difference will take it hundreds of miles off course.

Clear’s purpose is to help readers appreciate a concept that’s difficult for the human brain to grasp: compounding. The idea—common in investing but also applicable to other areas of our lives—is that repeated actions build on each other to produce results that are dramatically larger than you might expect. A common and entertaining example: If you were to take a piece of paper and fold it in half and then fold it in half again, and do that 40 more times, it would grow so high that it would reach the moon. Continue folding that piece of paper just nine more times, and it would reach the sun.
Regards,
Ted
https://humbledollar.com/2019/01/repeat-for-emphasis/
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