Compounding is great, but so is return to the mean. The comparision should be his rate of return. If its continously above the average over a long period, its not luck.
Compounding ensures that he will probably have a lot of money either way, which is why total $$ is a bad proxy for luck vs skill.
And compounding works wonders over the long run.
Apparently he started his first investment at age 11. 8 decades is a long time to compound even at low rates.
Compounding is great, but so is return to the mean. The comparision should be his rate of return. If its continously above the average over a long period, its not luck.
Compounding ensures that he will probably have a lot of money either way, which is why total $$ is a bad proxy for luck vs skill.
Many people manage to reach bankruptcy much faster than eight decades.