*You must pay the tax if you get the income.* This reminds me of [[Barbells make you stronger]], there is always a balancing force that requires some payment. It's kind of like [[variability is more important than average]], over the long-term paying attention to both is a key to understanding how a system works. This motto is from the Psychology of Money, and it helps you to understand the role volatility plays in investing. It matters because if you can pay the tax of volatility, you can participate in the long-term [[the hidden power of compounding]]. Unfortunately compounding is a slow force, and volatility is a fast force, and [[progress is slow, but setbacks and disaster happens quickly and impactfully.]] ##### What would the opposite argument be? The problem with volatility is that it makes you try to control it. In fact, it cannot be controlled. [[risk is what is left after everything you have thought of]], and [[luck and risk are two sides of the same coin]], so in some ways you just have to be willing to pay the tax to have the opportunity of growth. tags: #note/statement | #on/growth | #on/money | #on/risk ##### Sources: