The Phlegmatic Elephant

I developed this in Excel to illustrate the remarkable impact of compounding even a single penny. Starting on day 0 with just one penny, it doubles to two pennies on day one. Thanks to the compounding effect, this exponential growth resulted in an impressive $327.68 by day 15. Fast forward to day 27, and that initial penny has transformed into an astonishing $1,342,177.28. By the end of 30 days, the total skyrockets to an incredible $10,737,418.24.

This concept of compounding is the reason Albert Einstein referred to it as “the eighth wonder of the world.” He famously stated, “He who understands it, earns it; he who doesn’t, pays it.” This principle underpins the investment philosophy of Warren Buffett and his partner Charlie Munger, who are well-known for their commitment to leveraging compounding to build long-term wealth.

Let’s take a look at the transformation of McDonald’s from the 1990s to 2020. What a journey it has been! Back in 1990, when I was just a kid, McDonald’s was the ultimate hangout spot. We enjoyed our Happy Meals and played at the McDonald’s playground, creating cherished memories. However, by the year 2000, those playgrounds began to vanish. The iconic red and yellow colors remained, but gradually, we saw the emergence of McCafé locations around 2015-2016, leading us to where we find ourselves today.
McDonald’s has matured, much like we all do. As children, we nurture dreams—some of us dreaming of garages filled with Lamborghinis, while others, like me, aspired to become veterinarians. Fast forward to now, and I find myself in a career with the federal government, feeling a bit lost about how things changed.
It seems that as we transition into adulthood, we often lose sight of our dreams. The evolution of McDonald’s mirrors what happens to many of us on that journey. But I challenge us all to rekindle those dreams. Let’s tap back into the imagination we once had as children, and dare to dream big once more. Let’s revive those aspirations and embrace the wonder we experienced in our youth.