About Compounding
Shane Parrish of Farnham Street pointed out that “Compounding,” is a really useful concept, especially when applied to things outside of finance, where the term refers to earning interest on interest.
Then along comes an article by Daniel F. Chambliss, "The Mundanity of Excellence," reminding us that great talent can happen only when we stand on the shoulders of numerous sub-talents:
Excellence is mundane. Excellence is mundane. Superlative performance is really a confluence of dozens of small skills or activities, each one learned or stumbled upon, which have been carefully drilled into habit and then are fitted together in a synthesized whole. There is nothing extraordinary or superhuman in any one of those actions; only the fact that they are done consistently and correctly, and all to- gether, produce excellence. When a swimmer learns a proper flip turn in the freestyle races, she will swim the race a bit faster; then a streamlined push off from the wall, with the arms squeezed together over the head, and a little faster; then how to place the hands in the water so no air is cupped in them; then how to lift them over the water; then how to lift weights to properly build strength, and how to eat the right foods, and to wear the best suits for racing, and on and on. Each of those tasks seems small in itself, but each allows the athlete to swim a bit faster. And having learned and consistently practiced all of them to- gether, and many more besides, the swimmer may compete in the Olympic Games. The win- ning of a gold medal is nothing more than the synthesis of a countless number of such little things—even if some of them are done unwit- tingly or by others, and thus called “luck.”.
One final thought: It has increasingly appeared to me that anything good that has happened (and many bad things) are the result of work I’ve done (or failed to do) over many years or decades. Compounding is behind my biggest successes and failures. One of the biggest ways this show up in in your reputation. As the saying goes, a good reputation is hard to earn and easy to lose. When you've spent your entire life trying to be trustworthy, truthful and kind, that opens doors for you, over and over. But you might forget that this superpower was something you assembled over decades.