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I suspect outsized wealth generally correlates with skill in exploiting the compounding effect. People on this board have generally grasped this concept. Those living hand to mouth have a very hard time setting anything aside, much less investing it effectively. Hence the forced savings represented in home ownership too often comprises the entire nest egg, assuming one is fortunate enough to own a home and hasn't drawn down the equity.

Even setting aside a very small fraction of earnings can mount up impressively over a lifetime through the 'magic' of compounding. The problem is that many, perhaps most, humans have a very hard time acquiring the gut-level feel needed to take advantage of this.

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