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Macro Minute: Week of September 11, 2023

Written by Wes Johnson on . Posted in Macro Minute.

Today, I am going to bring another thought from Morgan Housel. Years ago, he had a twitter post saying there should be a book titled, Shut Up and Wait, and every page would be this graph.

While this can be a bit overly simplistic, it does have some compelling reasoning to it. What are some steps we should take with the understanding that over time you will have this tailwind with momentary drops in between?  The first thing I think is that the sooner you can invest and expose yourself to this compounding effect the better off your wealth will be.

Another thing that comes to my mind is the statement from Charlie Munger. “The first rule of compounding is to never interrupt it unnecessarily.”

Here are my takeaways from Morgan’s graph:

  • Over time, investing has huge tailwinds
  • The earlier you get started all the better
  • Don’t stop the compounding unnecessarily

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