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title: The Lollapalooza Effect
created: 2024-11-18T09:16:49
modified: 2026-01-14T16:31:04
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by Charlie Munger

Multiple [compounding](the-compounding-effect.md) factors combine together to create something greater than its individual components.

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Combined action of multiple forces can lead to _extreme_ behaviors, decisions, or events, which are significantly more pronounced than what would be expected from any single factor.

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It can either make you rich or kill you.