Roger Federer’s commencement address at Dartmouth highlighted the surprising statistic that he won 80% of his tennis matches but only 54% of the points. This analogy was compared to the stock market’s win rate, emphasizing the importance of long-term compounding and the need to avoid fixating on short-term outcomes in investing. The speech underscored the significance of minor advantages compounding over time, both in tennis and in the stock market.
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