The number one rule of compounding, according to investing legend Charlie Munger, is to “never interrupt it unnecessarily”. This rule highlights the importance of allowing your investments to grow over time without withdrawing the gains prematurely. The power of compounding is most effective when earnings (such as interest, dividends, or capital gains) are continually reinvested over long periods. By not interrupting this process, the initial investment and the accumulated earnings from previous periods can generate even more earnings. Munger's advice underscores the value of patience and long-term thinking in investing. It suggests that the key to building wealth is reinvesting and allowing the compounding process to work its magic over many years.