Buffett’s Partnership Letters hold a number of lessons for everyone. Some stand out more than others because Warren Buffett repeats them throughout the letters. Those lessons are worth repeating again.
It is always startling to see how relatively small differences in rates add up to very significant sums over a period of years.
Exponential growth doesn’t come naturally to everyone. Mostly because it’s hard to imagine the huge amount of growth that happens on the backend based on what we see on the frontend.
To help his partners understand it, Buffett wrote three versions of alternate history to explain it. He rewrote the history of Christopher Columbus, da Vinci’s Mona Lisa, and the sale of Manhattan. His stories offer a fun way to rewrite historical outcomes and show the power of compounding. Continue Reading…