In a series of events that’s too detailed and boring to explain, I found out the bank sold all of my stocks. It felt very jarring.

As I considered what to do next—should I just move all the money out? Wait to buy my positions at the same price I sold, or even cheaper? Reassess my portfolio? Etc.—a piece of financial advice attributed to Warren Buffett and Charlie Munger came to mind: “The first rule of compounding is to never interrupt it unnecessarily.” 

Based on this advice, the next move was clear: get back to my original positions, and make this interruption as short as possible. The most serious threat was falling into the allure of trying to time the market (i.e., try to buy the stocks back at the same price or cheaper), and letting a short interruption turn into a long one. I’m sure a more experienced active investor could pull it off, I didn’t want to take that risk.

It cost several hundred dollars to buy back in at the same positions. I did it anyway, because it was the right thing to do, and for peace of mind.

I didn’t choose to go through this experience, and in the unlikely event it happens again, I know what to do. 

This principle can apply to all sorts of things that compound, including your practices, health, and reputation.