Compound Interest : Interest added to the original principal and its accumulated interest. Even if an asset’s price is too high or too low, it eventually converges to the market average . In fact, even with significant price volatility , it is only a matter of time before it aligns with the market average. However, there are occasions where it surpasses this average, and that’s when compounding becomes influential. Market prices reflect the actions of participants and the economic environment affecting their prices. Although sometimes distorted, they eventually revert to prices implicitly agreed upon by participants. But compound interest is a system specifically designed to outperform this market average. Interest can be monetary, but it can also be other economic effects or energy . By understanding and harnessing the power of compound interest , we can gain a significant advantage in our lives. - Joseph’s “just my thoughts”
A part-time worker at a fast-food chain put in a lot of effort. The worker’s dedication impressed the boss, leading to the firing of other part-timers and an increase in trust placed in this worker. As a result, the worker ended up with significantly more responsibilities while keeping the same salary. I reiterate that structure is more important than mere effort.
- Joseph’s “just my thoughts”
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