The greatest limitation of humanity is our failure to grasp the exponential function.

Over 2,000 books explore how Warren Buffett amassed his wealth, many of which are excellent. However, few emphasize a crucial point: Buffett's fortune is not just the result of being a skilled investor; it’s about having been an investor since childhood.

An astonishing $80.7 billion of Buffett's $81 billion net worth was accumulated after he turned 50, and $78 billion came after he qualified for Social Security in his mid-60s. This alone is impressive, but to truly grasp these figures, we need to look back decades.

Turning 30 is a pivotal moment for many ambitious workers, marking the transition from entry-level positions to real savings. While net worth distributions among teens and those in their 20s tend to be similar, they start to widen around age 30. In your 20s, an extra $100,000 can elevate you from the 50th to the 95th percentile. By age 30, you need an additional $390,000 to achieve that leap.

Buffett took investing seriously years before hitting puberty. By 30, he had amassed a net worth of $1 million—equivalent to about $9.3 million today—placing him in the 99.99th percentile.

Now, let’s imagine a scenario: What if Buffett began his investing journey at age 22, right out of college, rather than at 10? If he spent his 20s learning about investments and ended up with a net worth in the 90th percentile—around $24,000 at 30—what would his worth be today if he achieved the same returns?

$1.9 billion.

That’s a staggering 97.6% less than his actual net worth of $81 billion. This suggests that a substantial portion of Buffett's success is tied to the foundation he built in his formative years. Without that early capital, it’s unlikely he’d even be a household name today.

This principle extends beyond Buffett. Many aspects of business and investing follow a similar pattern. It’s easy to focus on recent successes—like Buffett’s investments over the last decade—but understanding the roots of success requires examining the overlooked foundations.

Consider Amazon. Jeff Bezos chose to start with books for a strategic reason: In 1994, the book category had more items than any other, allowing for a wider selection online. E-commerce was challenging back then; pitching convenience was not enough. But Amazon offered greater variety, establishing a foundation that propelled its success during tough times in the early 2000s.

Most brands operate on similar principles. They thrive on consistency. While consumers value quality, they also prioritize predictability. Apple’s strong brand is not just due to its innovative products but also its long-standing commitment to quality since the 1980s.

Take antibiotics, for example. In the early 1940s, military doctors urgently sought solutions to combat infectious diseases among soldiers. Their groundbreaking work on penicillin laid a technological foundation that shaped modern medicine.

Similarly, U.S. cigarette usage spiked during the world wars as soldiers were given cigarettes in their rations for a touch of comfort. This behavior carried over generations, leading to a dramatic rise in smoking rates.

These examples illustrate a common theme: the power of compounding is often underestimated. Michael Batnick highlighted this when comparing simple addition to exponential multiplication. While you can quickly add eight repeatedly, multiplying eight multiple times results in a vastly larger number, emphasizing how small efforts can yield monumental results over time.

Many overlook this principle, focusing instead on Buffett’s recent investment strategies rather than the foundational habits he built as a teenager. Albert Bartlett aptly stated: “The greatest shortcoming of the human race is our inability to understand the exponential function.”

Starting with a clean slate can indeed be advantageous in a constantly changing world. Yet, there are moments when it's essential to let something seemingly small develop and compound into something significant. As Charlie Munger noted, “The first rule of compounding: Never interrupt it unnecessarily.”

Begin investing as early as possible and encourage others to do the same. Building a reputation through small, consistent actions is where great achievements begin.