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The Morgan Housel Podcast

Quiet Compounding

The Morgan Housel Podcast

Morgan Housel

Business

4.91.1K Ratings

🗓️ 17 June 2024

⏱️ 8 minutes

🧾️ Download transcript

Summary

"Nature is not in a hurry, yet everything is accomplished,” said Chinese philosopher Lao Tzu.

Giant sequoias, advanced organisms, towering mountains – it builds the most jaw-dropping features of the universe. And it does so silently, where growth is almost never visible right now but staggering over long periods of time.

It’s quiet compounding, and it’s a wonder to see.

I like the idea of quietly compounding your money. Just like in nature, it’s where you’ll find the most impressive results.

Transcript

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0:00.0

Welcome back.

0:07.0

There's this great quote from the Chinese philosopher, Lausu, who says, quote,

0:17.0

Nature is not in a hurry, yet everything is accomplished. So think about giant Sequoias and advanced organisms and towering mountain ranges.

0:29.0

Nature builds the most jaw-dropping features of the universe, and it does so silently,

0:38.0

without trying to get attention, where growth is almost never visible right now, but is staggering over long periods of time.

0:49.0

It is what I would call quiet compounding, and it's a wonder to watch it happen. I like the idea of

0:58.9

quietly compounding your money and just like in, it's where you'll find the most impressive results.

1:06.8

Every few years in the media you'll hear the story of a country bumpkin with no education and a low-wage job

1:17.1

who managed to save and compound sometimes literally tens of millions of dollars.

1:23.0

And the story is always the same.

1:25.0

They just quietly saved and invested for decades.

1:30.0

That's it. That's all they end up doing.

1:32.0

They never bragged. They never flaunted. They never

1:36.4

compared themselves to others. They never worried that their investments trailed

1:40.9

their benchmark last quarter.

1:44.0

Their entire financial universe was just contained to the walls of their home, which

1:49.5

allowed them to play their own game and be guided by nothing other than their own goals.

1:57.0

That was their own superpower.

2:00.4

That was actually their only financial skill, but it's the most powerful one of all.

2:07.0

Look, think about if you, after your first date with a partner, if you had to make every phone call and every

2:14.5

text and every conversation with that person public on social media. Or even

2:20.9

just with a small group of friends and family.

...

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