ReadGlobe · Growth & compounding

Growth & compounding

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The engines of nonlinear results — compounding, leverage, flywheels and network effects.

1. Compounding

   Compounding is growth that feeds on itself: returns generate further returns, so gains accelerate over time rather…

   Mental model · updated 29 May 2026

2. The Pareto principle

   The Pareto principle — the 80/20 rule — observes that for many outcomes, roughly 80% of effects come from 20% of…

   Mental model · updated 29 May 2026

3. Flywheel

   A flywheel is a self-reinforcing loop where each part feeds the next, so momentum builds over time. Jim Collins’…

   Mental model · updated 29 May 2026

4. Network effects

   A network effect is when a product or service becomes more valuable as more people use it. Each new user adds value…

   Mental model · updated 29 May 2026

5. Leverage

   Leverage is using a small input to produce a disproportionately large output — Archimedes’ "give me a lever long…

   Mental model · updated 29 May 2026

Written by Paulo de Vries · free to read, no sign-up