We all understand compounding in theory: reinvesting growth so that it builds upon itself over time. But what if you could compound on top of your compounding—layering growth within the same period? That’s what we call stacked compounding, and it has the power to create truly exponential outcomes.
The Visual That Says It All
Take a look at the chart above, which compares four growth paths over 24 months:
- No Compounding (Flat Line) – Value remains stagnant.
- Single-Tiered Compounding (75%) – Traditional, strong growth.
- Double-Tiered (50% + 25%) – Two sequential layers of growth.
- Triple-Tiered (25% + 25% + 25%) – Three layers of growth stacked in a single cycle.
Although each compounding path uses the same total growth rate (75%), the outcome is dramatically different. The triple-tiered model outpaces all others—by millions.
Why Stacking Beats Simple Compounding
Each layer in stacked compounding compounds on an already-increased base:
- First layer grows the base.
- Second layer compounds on that.
- Third layer accelerates even further.
The result is compounding over compounding—and it explains why triple-tiered growth shoots upward while traditional growth lags behind.
The Patience Factor: When Results Really Start to Show
But here’s the catch: stacked compounding doesn’t look impressive at first.
- For the first 10–12 months, results are modest.
- Months 15–18 show the first major gains.
- By months 20–24, the curve explodes—especially in the triple-tiered model.
This is what James Clear calls the “Valley of Latent Potential.” Your efforts are working, but the results are still building beneath the surface. If you give up too soon, you miss the magic.
Business Takeaway: Stack Everything
Stacked compounding isn’t just for investing—it’s a philosophy for business growth:
- Marketing: Follow an ad with email → retargeting → webinar invite.
- Sales: Outreach → personalized demo → special offer.
- Product: Deliver value → educate → upsell.
Each touchpoint stacks, amplifying the one before it.
Final Word: Stack. Wait. Win.
Stacked compounding shows that order matters—and so does patience. The biggest wins don’t come from a single big move. They come from layered, consistent action that builds on itself over time.
Don’t just grow. Stack your growth. And give it time.
