Leverage Notes #10: Diminishing Returns Aren't So Bad

If you can noticeably tell that the effort you're putting in isn't producing the same results as when you started, you might choose to keep going because you are enjoying the task or you might stop to prepare for the next one. But what's the right choice?

Does it matter if there are diminishing returns? It depends on what you're optimizing for. If you care about the medium to long term and there's a noticeable personal or recovery cost for the next learning session, then it's time to pack it up. But if not, why not continue on? Suppose the return becomes 20% of what it is at the start. While inefficient, it out laps zero.

Continuing on also helps with training your capacity to focus for longer periods of time. It can even be relaxing if you're in a flow state. At the same time, there may be more subtle drawbacks. There's always an opportunity cost associated with your time. Or sometimes there are spillover effects. Maybe staying at the gym an extra 15 minutes makes your commute back another 10 minutes longer.

When is it the right choice? It's up to you.

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