The Eighth Wonder of the World: (thread)
7/ You can follow @jackbutcher.
"Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it." — Albert Einstein
Take this legendary exchange from Hemingway's The Sun Also Rises:
“How did you go bankrupt?” Bill asked. “Two ways,” Mike said. “Gradually, then suddenly.”
Most of us haven't been patient enough to benefit from compound interest, and substitute our lack of personal experience for a lack of belief in the concept altogether.
The reality, however, is that many give up before compounding kicks in meaningfully.
Underestimating the power of network effects when you're building on the internet is a massive blindspot.
Here's a real example from the @visualizevalue business:
A year of network building on the front-end, leveraging personal conversations into paid consulting and design gigs, while building up equity that can now be extracted as dividends via product sales (12 months later).
This is one of 40 guiding concepts I've leveraged to build an independent, high-margin, digital business.
For the other 39, have a gander at this:
Tip: mention @threader_app on a Twitter thread with the keyword “compile” to get a link to it.
Enjoy Threader? Sign up.
Since you’re here...
... we’re asking visitors like you to make a contribution to support this independent project. In these uncertain times, access to information is vital. Threader gets 1,000,000+ visits a month and our iOS Twitter client was featured as an App of the Day by Apple. Your financial support will help two developers to keep working on this app. Everyone’s contribution, big or small, is so valuable. Support Threader by becoming premium or by donating on PayPal. Thank you.
You can follow @jackbutcher.