A SHORT NOTE ON CONSISTENCY
One thing I find interesting in mental models is the intersectionality of fundamental theories and principles of different subjects. For example, there’s something called ‘Variance Drain’ in Geometry, which is the interruption of constant increase above a certain level of threshold. This theory applies to investment, where it “operates under the theory that between two portfolios with the same beginning and same average return, the one with the greater variance will have a lower compound return and less-ending wealth.”
But how does ‘Variance Drain’ apply to you and me?
Albert Einstein said that the most powerful force in the universe is ‘Compound Interest’. And Peter Kauffman defines CI as “the dogged incremental constant progress over a very long time frame.”
Let me break it down. If you place an empty bucket under a leaking tap and come back to it after a couple of weeks, the level of water in it would have increased. Although it’s not rushing, because the water is leaking consistently over a long time frame, there will be an increase.
And this is how CI applies to you and me. Take the acquisition of a skill, for example. It’s been said that you need 10,000 hours of constant practice to master a new skill. That involves the compound interest of hours of practice, right? If you give it the required hours consistently without breaking, you’ll master the skill. But what happens to most of us is that we step off the pedal, we break consistency and we experience variance drain.
When you take a break from learning a skill, you won’t come back to the level you were at. Instead, you’ll pick up from a much lower level.
Say, you’re at level 80 before you break consistency, variance drain will set in and it’ll start decreasing from 80, meaning that when next you want to continue, you don’t start from where you left, which is 80, you’re going to start from something like 75 or lower.
See? This is why the best discipline to have is consistency. Consistency helps us take advantage of compound interest and avoid variance drain.