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*APY as of 11/12/2024 is variable and subject to change.
Friends,
Everyone knows Warren Buffett is one of the world's greatest investors -- worth roughly $150 billion today. But here's something lots of people don't know: 99.3% of that sum was added after Buffett turned 56 years old.
As his longtime partner Charlie Munger once quipped: "The first rule of compounding: never interrupt it unnecessarily."
But how can you virtually guarantee you'll continue compounding as you age?
Paradoxically, we don't think it's necessarily by focusing on money. Rather, it's by focusing on what truly interests you.
Entrepreneur Barrett O'Neill recently covered the phenomenon in his newsletter:
"Until recently, I thought it didn't matter what you did as long as you made money and that chasing your interests was a fool's errand.
I was mostly wrong."
What Barrett missed: if you're interested in something, you'll keep coming back to it. Business might be brisk; it might be slow. It doesn't matter -- you'll consistently find your way back to it.
And when you consistently find your way back to an activity, something magical happens: compounding -- of skills, networks, and (yes) wealth.
Again, from Barrett:
"I know [real estate] is something I am willing to compound for 50+ years, so doing it the right way -- building lasting relationships and trust with counterparties, investors, etc -- is easy.
If interests and the opportunity to create wealth converge, you will eviscerate short-term incentives."
And if you can eliminate short-term incentives by doing an activity you like doing right now -- you've found the long-term cheat code that virtually guarantees a positive outcome.
Wishing you investing success,
Ben Carlson shares a wonderful post on 20 Lessons From 20 Years of Managing Money.
A common mistake people make when setting their Money Rules is that they're focused on saying NO
— Ramit Sethi (@ramit) April 24, 2023
Most of my Money Rules are about saying YES!
It took me years to develop my Money Rules, & I love sharing them so you can see what I love and value
Here are my 10 Money Rules:
It's December, so it's time to do end-of-year tax planning. Here's a great resource on a guide to tax loss harvesting.