Living To Compound Another Day

A single workout won't do much for your health. Reading a few pages won't make you much smarter. Meaningful results are a product of consistency over time. Today's reps are not today's results. True change comes from compounded effort.

Compound interest is a wonder. It's much easier to think linearly so exponential growth can seem magical to us, but it's very real and something we can harness.

As an investor, returns are important (obviously), but what makes them meaningful is time. A single day in the markets is trivial. To benefit from compounding you need to play the long game. Think decades, not days.

Investors fail by making moves that take them out early - before the magic happens. Putting all your eggs in one basket can leave you eggless. Over-leveraging can result in poorly-timed redemptions. Having more stock exposure than you're comfortable with can cause panic-selling during shaky waters.

You want a strategy you can stick with, even if it forgoes higher returns. A strategy with moderate returns that you can endure will outperform one with higher returns that you abandon.

Workouts that enable you show up everyday. Books that keep you coming back for more. Showing up everyday. This leads to meaningful results.

Want to be a successful investor?

Stay in the game.

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The Art of Giving Feedback

Constructive feedback is an awkward affair. You don't want hurt feelings, but recognize the importance of honesty. You've tried the classic "hoping things will get better on its own" and unfortunately it hasn't played out. When giving feedback, here are a few things that I try to keep it mind. Start with empathy. Step into their shoes and understand their story. If you don't know, ask. Be genuinely curious. Feedback is a dynamic affair. Shared communication with a shared goal towards progress. Take the emotion out of it. Focus on the situation, not the person. Focusing on the person adds unnecessary weight to an already emotionally-bloated event. Be specific. Give clear examples. Vague feedback equals dismissed feedback. Doing above won't de-awkward things fully, but it will dampen it and increase the chance of better outcomes.

Bias For Clarity

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Negative Feedback, Positive Lessons

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Herman Ye

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