Growth Rate Is the Key: The Gap Will Only Widen

Originally published 2025-10-29Short piece with Robin’s commentary

Storage information

Bookmarks and reading positions are stored in this browser. Manage and back them up in My Reading.

Collected in Robin Shen’s Field Notes · Content type and attribution are shown above

English translation of the Chinese post originally published 2025-10-29. Translated 2026-10-30 with AI assistance. Historical figures and claims have not been updated or independently verified. 中文原文

Reading guide

The short piece asks: I have 10,000 and my colleague has 1 million. If we both invest in something yielding 10% annually, will we be equally wealthy at year-end? No—the gap will widen from 990,000 to 1,089,000. When growth rates are identical, the absolute gap between us and the leader keeps growing. Those behind, or new entrants, must find a faster growth engine to have a chance of catching up and overtaking. Robin adds that in recent years, he has found larger companies also growing rapidly. With higher gross margins, they earn more and more: revenue growth of 30% can accompany profit growth of 50–80%.

Key points

At the same 10% return, the gap grows from 990,000 to 1,089,000.
Equal growth rates mean a widening absolute gap with the leader.
Those behind need a faster growth engine.
Robin: larger companies’ higher gross margins can mean 30% revenue growth and 50–80% profit growth.

Columns and beams in an open building are connected by central rods and balanced weights, suggesting structure and checks in governance. — Capital markets & governanceThematic illustration · AI generated

Full text — English translation

Growth Rate Is the Key I have 10,000; my colleague has 1 million. We both invest in a project yielding 10% annually. Will we be equally wealthy at year-end? No. Not only that, the “wealth gap” between us will widen from 990,000 to 1,089,000. When growth rates are the same, the gap between us and the leader will only keep widening. Those behind, or new entrants, must find a faster growth engine to have a chance of catching up and overtaking. ----- Robin: “In recent years, I have found that larger companies can also grow very quickly. With higher gross margins, they earn more and more: revenue grows 30%, while profit grows 50–80%.”

These articles are personal notes, book excerpts, and collected reprints. Figures and events reflect the time of the original publication, are not current information, and do not constitute investment advice.

DISCUSSION

Reader comments

What did this article make you think about? Different perspectives and constructive criticism are welcome.

Comments are public immediately. Do not include personal contact details or external links. Automated checks block suspicious solicitation, prohibited transactions and spam; they can make mistakes.

Comments load when you reach this section.

Administrator sign-in