If you’ve stumbled across this letter, welcome to Growth on Growth! This is a newsletter where you can find ideas that compound your wealth, health, and wisdom. 

In the event I meet a genie someday, I’ll only need one wish. Three would be superfluous. My sole wish would be for unlimited “Growth on Growth” in every aspect of my life—my shorthand for exponential growth, also known as compounding. After all, if your wealth, health, and wisdom keep expanding, what more could you need? 

Einstein famously called compounding the eighth wonder of the world, and you likely recall the parable of the king, the wise man, and the chessboard full of wheat. Spoiler alert: doubling a grain of wheat 64 times produces a staggering amount of gluten! Warren Buffett and the late Charlie Munger popularized the power of compounding, emphasizing the discipline and patience it requires. 

Compounding rewards the patient and persistent. An exponential curve with a starting point greater than 1 and exponent greater than 1 will always overtake a linear trajectory. In fact, the linear line may win in the beginning but the future always favors the compounding path. It just takes time. Isn’t compounding beautiful? 

The formula for compounding is straightforward: 

Though you can theoretically compound forever, it’s mathematically impossible in reality (more on that later). Maintaining a high or constant growth rate also demands serious commitment—converting lead to gold might be easier. That’s why I’d use my one wish on “Growth on Growth”! 

While this formula originates in finance, it applies to almost every aspect of life. Success as a “compounder” in business often hinges on success in other areas. For instance, famed investor Mohnish Pabrai stresses the need for a long runway to see investment decisions play out. Even if you double your money every two years, a short lifespan means compounding never reaches full potential. 

Your health and well-being are crucial. Making smart decisions to safeguard and compound your health is non-negotiable. Getting proper nutrition, working out frequently, and meditating deeply might seem inconsequential day to day, but over a lifetime, these habits snowball into a longer runway. 

Beyond physical health, you must feed your mind. As Charlie Munger said, “In my whole life, I have known no wise people who didn’t read all the time—none, zero.” Reading isn’t the only way to learn, but a commitment to continuous learning is essential. Personal and professional growth both hinge on nourishing the brain. “Garbage in” truly leads to “garbage out,” so we should avoid needless negative media or mindless social media that saps our attention and optimism. 

Think of the compounding equation in terms of key ingredients: 

Exponential growth is a powerful force, far surpassing linear growth. Yet many people never achieve their highest potential because they think linearly. And while linear growth is better than no growth, the true opposite of exponential growth is exponential decay. The same forces that propel you to great success can also plunge you into rapid decline if applied in reverse. 

Carl Sagan, in Billions and Billions: Thoughts on Life and Death at the Brink of the Millennium, warned that exponentials can’t continue indefinitely because they would eventually consume all resources. Our planet has finite resources, and we can’t grow or live forever. Perhaps Elon Musk will take us beyond Earth’s limits someday, but I’ll keep compounding as a mere earthling in the meantime! 

This newsletter will (1) draw on the timeless wisdom of legendary and modern compounders, (2) discuss new ideas for compounding, including investment ideas, and (3) reflect on my personal journey to achieve “Growth on Growth.” No topic is off-limits if it offers valuable insights on investing, lifelong learning, or greater well-being. 

I hope you’ll join me on this journey and help keep me honest. Cheers to a life in pursuit of ‘Growth on Growth!’