Everything in life and business, compounds.
The gym sessions you skip.
The calls you make.
The habits you tolerate.
The people you surround yourself with.
It’s all compounding, every day, quietly, without fanfare.
In business, we obsess over financial compounding......IRR, MOIC, reinvested profits. But the real magic (or destruction) is happening elsewhere.
Culture compounds. A company that tolerates mediocrity for “just this once” ends up building a monument to it. The same goes for excellence......keep raising the bar and one day you realise it’s the only language spoken internally.
Talent compounds. The A-players hire A-players. The B-players hire C-players. it’s math.
Execution compounds. Businesses that measure, review, and adjust every single week win over those that “check in quarterly.” Same inputs, different cadence, wildly different outcomes.
And it’s not just business. Life works the same way.
Every glass of wine, every late night, every skipped run, compounded over time, becomes your health.
Every book you read, every conversation you seek, every risk you take, compounded over time, becomes your edge.
Compounding doesn’t care whether it’s positive or negative. It just does its job.
That’s why the best investors and operators I know have one thing in common, they don’t chase big moments. They build small, consistent ones.
Because in the end, money, health, relationships, and businesses all run on the same principle: everything compounds.