play long-term games

compound interest

back in high school, most of us probably did some exercises involving compound interest. you plug in the formula and get the answer — compound interest was just a simple formula to solve math problems. but when i got to university and took finance classes, my professors emphasized its importance. the more i experience life, the more i realize that compound interest is not just a math formula — it’s a much deeper concept. over time, things that seem small and insignificant can create enormous results.

game theory

game theory is a concept that anyone who studies economics has probably heard of. to introduce it, i’d like to quote the following passage:

christmas 1914, on the western front. ignoring orders that forbade fraternization with the enemy, british and german soldiers left their trenches, crossed the battlefield to recover their comrades’ bodies, exchanged gifts, and played games. western europe has been peaceful for decades, yet people don’t seem to trust each other at all. according to surveys, over the past 40 years, fewer and fewer people say they trust others. so the question is: why, during peacetime, do friends become enemies? and why, in wartime, do enemies become friends? game theory helps explain this lack of trust, and how to overcome it.

in game theory, the best way to win a long, repeated game is through wise cooperation — it’s how both sides can benefit. all of us are participating in such games, in one form or another — a relationship, a job, or an investment. no one wants to cooperate long-term with someone who harms others for short-term gain. i believe having a long-term vision and being willing to invest time and effort into things you believe in is the path we should choose.

of course, understanding the theory is one thing; putting it into practice is another. we tend to be drawn to short-term rewards — quick-rich courses, becoming a “full-stack developer” in just 1–2 months... it’s no coincidence that “brainrot” was chosen as the word of the year in 2024. platforms like tiktok and other short-form content apps are becoming more popular, capturing people’s attention. the entertainment value of short content plays a significant role in the success of these platforms. we are living in a society that lost focus.

anyway, live and let live.

wealth, relationships, knowledge, and everything else

the other day, after not messaging my former manager for a while, i reached out to say hi and was met with the question: “is something going on? why the sudden message?” i was a bit taken aback. i’ve never liked the idea of disappearing for a long time only to reach out when i need something. i don’t want to talk too much about relationships because i believe everyone has their own standards and values when it comes to building and maintaining connections. for me, keeping in touch over the long term — even when there's no shared obligation — is a long game in itself. no one knows whether we might need someone in the future. checking in from time to time is simply a way to show that they still have a place in your memory.

if we exclude health — which is essential — i think money and knowledge are the two most important things in life. without money, everything is difficult; without knowledge, it’s hard to achieve much. one piece of advice i often come across in finance is to invest as early as possible. compound interest quietly grows your wealth, and one day it will make you go “wow.” knowledge is harder to measure in terms of compound growth than money, but i believe the more we learn — whether technical skills or general life knowledge — the easier it becomes to absorb new information. for me, learning is a lifelong journey. combined with compound interest, i hope that the things i accumulate now will help me fight off cognitive decline as i age.