An Insight: Into Compounding

Today when I visited the dentist with my grandpa. The dentist upon examining his teeth has found that two of his molars are completely eroded to the layer of blood vessels. And the reason she pointed out was “brushing his teeth”.

Years of brushing his teeth in the wrong way — hitting enamel with the plastic end of the toothbrush — has caused the erosion of his enamel.

Whereas the same brushing if done in the right way for years is going to keep your teeth decay-free and strong.

And the magic of compounding is that you can’t see the change/impact in a short term. But in the long-term the impact is exponential.

So the ingredient for Compounding shouldn’t just be consistency, rather it should be consistently doing the right thing.

You invest every month, great. But where do you invest?

That’s the insight for today. See you tomorrow.

Cheers!