▲ 6 r/NavalRavikant
compounding:My thoughts on this
even for someone who stays at their baseline—neither growing nor decaying on average—compounding still happens every day. Sometimes it is growth-aligned, and sometimes it is misaligned. When both cancel each other out, the person remains the same on average over days, months, or years. A good way to grow is to prevent new misaligned compounding and, whenever you achieve growth-aligned compounding, set it as your new baseline (new normal). Through this simple approach, one can grow exponentially.
Code:
import numpy as np
import matplotlib.pyplot as plt
x = 10
days = 365
growth=[]
for day in range(days):
x *= 1.01
growth.append(x)
t = np.arange(0, days)
current = np.array(growth)
plt.plot(t, current)
plt.xlabel('Day')
plt.ylabel('Value')
plt.title('Compound Growth Over Time')
plt.show()
u/Local_Philosopher272 — 3 days ago
