Many people know that Buffett made a lot of money mainly through compound interest. (99% of Buffett's wealth was earned after he turned 50. He does not manage money for others, nor does he use leverage, but relies on his own money to snowball.)

However, making money by relying on compound interest is usually relatively slow, and most people do not have the determination to do so.

The article recommended today tells you that not only making money, but all gains in life come from compound interest. Whether it is work, study or marriage, as long as you adhere to long-termism, you can achieve exponential growth.

Sam Altman, the head of Open AI who has been very popular recently, strongly agrees with this view. He said that most people spend their lives picking up sesame seeds and throwing away watermelons, trapped in the trap of linear growth; if a person wants to achieve exponential growth, he needs to look at everything from a longer-term perspective, remain patient, and think about the future. What will be most important a few years from now.

The following content comes from the conversation "The Power of Compound Interest" between Naval Ravikant, a well-known Silicon Valley angel investor, and his friend Babak Nivi, co-founder of AngelList. I hope it can inspire and help you.

Nivi: When it comes to what industries you should consider working in, what kind of work you should do, and who you should work with, your view is that “one should choose an industry where they can play the long game with long-term players.” Why?

Naval: Yes, and this is something that we can learn from looking at how Silicon Valley and high-trust societies work: whether it’s relationships, whether it’s making money, whether it’s learning, essentially, all the benefits in life come from compound interest.

Compound interest has incredible power. If you start with what you already have and add 20% every year for 30 years, what you get is not 30 years times 20%, but compound interest. It will continue to grow and grow and grow until you suddenly realize how big it is. This is true for kindness, love, relationships, or money. So, I think compound interest is a very important force.

You have to learn to play the long game. The long game is good for compounding, it's good for trust. If you look at the prisoner's dilemma type of game, the strategy is tit-for-tat, which is I will treat you the same way you treated me, although I may sometimes choose to forgive you to avoid mistakes. But this is the result of the iterative prisoner's dilemma.

So when you're in a situation like in Silicon Valley where people are doing business with each other, they know each other, they trust each other, they're going to choose to make decisions that are good for each other because they know that the other person is going to be there in the next game.

Of course, sometimes there are exceptions. Because in Silicon Valley, sometimes you can make a lot of money in one go, so people sometimes betray each other, and their thinking is, "I can make a lot of money with this one go, and I don't care about the rest." So, there will always be exceptions.

But at the core, if you want to succeed, you have to work with other people. And you have to figure out who you can trust, and who you can trust long-term, so that you can play the game with them. Compounding and high trust will make the game easier, and you will reap great rewards at the end of the game cycle. #BTC #ETH #Binance #量化交易 #Web3