Operating Principle
2–4 min read
Exponential growth bias causes underinvestment early and panic later.
Operating Question
Why It Matters
Exponential growth bias causes underinvestment early and panic later.
Supporting Evidence
Wagenaar and Sagaria; Stango and Zinman on exponential growth bias.
Research Notes
Validate the specific mechanism in your business before treating this as a general rule.
Practical Actions
Plot compounding curves; check for slow compounding; set patience thresholds.
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