COMPOUND WEALTH

“If you start with a small amount of money, like $10,000, and you are able to compound that at 25 or 30 percent, the math is staggering over thirty years. The key is not to find a thousand things, but to find the few things that can compound and then get out of their way so they can work for you without interruption.”

“When the time comes to buy, you won't want to. Usually, the best opportunities are found when the news is at its worst and everyone else is terrified of losing more money. That is exactly when the expected return is the highest because the price has been driven down so far by mass pessimism.”

“Don't study lottery winners. If you look at someone who took an enormous, uncalculated risk and it happened to pay off, you're learning the wrong lesson about how the world works. You want to study the processes that produce consistent, repeatable results over a long period of time rather than one-off miracles.”

“In a finite game, the goal is to win and end the game. In an infinite game, the goal is to keep playing. Investing is an infinite game where your reputation, your capital, and your relationships all compound as long as you stay in the arena and avoid the mistakes that could knock you out of the game entirely.”

“Most investors diversify way too much because they are afraid of being wrong. But if you have high conviction in a business you understand deeply, you should circle the wagons and put a significant portion of your capital to work right there, because truly great opportunities only come around a few times in a decade.”