Compounding severity as a function of time, not rate base doubles roughly every 7 yr — time, not rate, sets the multiple 1x 2x 4x 8x 16x 32x 64x 128x 256x 512x 1024x multiple of stake 0 10 20 30 40 50 60 70 holding horizon (years) 30 yr — ~20x same ~10% rate 68 yr — ~825x still same ~10% the extra decades close the gap
compounded multiple
~825x
holding horizon
68 years
doublings (~7 yr each)
9.7