It All Compounds

Warren Buffett’s snowball of capital started as a small snowflake. He bought a farm with money from a paper route that he scraped together when he was in high school. His acumen for allocating capital was honed under the tutelage of Ben Graham and he began to invest his resources into small firms. His 70 years of compound returns have culminated with major stakes in Apple, Geico, Coca-Cola, and many other companies.

Aspiring young men and women study his journey, but foolishly only apply the idea of compounding to capital. Great entrepreneurs understand that it applies to your skillset, as well.

Henry Ford saw his first engine in 1875, started repairing engines in the 1880s, and didn’t found the Ford Motor Company until 1901.

Katrina Lake sketched out her vision for the next generation of retail years before she innovated on its business model with Stitch Fix.

Jimmy Donaldson (Mr. Beast) studied viral YouTube videos for a decade before his own channel started to takeoff.

Great outcomes take time.

Buffett bought insurance companies so that he could compound his investments tax-free. When you compound your skills, you get the exact same benefit.

Invest in the skills now and watch them compound.

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