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Figure 1From “Why growth compounds, and activity doesn't.”

Accumulation versus activity, indexed over twelve quarters

A model, not a measurement: the parameters are stated below so the axes can carry real numbers. Activity peaks within each quarter and returns to where it began. The line that matters is the third one: the same accumulation net of erosion still never resets, but after three years it has reached 289 against the gross figure's 535.

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Figure 1Accumulation versus activity, indexed over twelve quarters

Accumulation versus activity: index of cumulative value over twelve quarters A modelled comparison indexed to 100 at quarter zero. Activity rises to 135 within each quarter and returns to 100 at every quarter boundary, ending where it began. Gross accumulation compounds at 15 percent per quarter and reaches 535. Accumulation net of 5 percent quarterly decay compounds at 9.25 percent and reaches 289: still rising, never resetting, but a little over half the gross figure. 0 100 200 300 400 500 600 0 2 4 6 8 10 12 Cumulative value (index, Q0 = 100) Quarters elapsed 535 289 100 Accumulation, net of decay (9.25%/qtr) Accumulation, gross (15%/qtr) Activity: peaks at 135 within the quarter, resets to 100

Source: Modelled illustration. Parameters: gross accumulation 15%/quarter; decay 5%/quarter (net 9.25%); activity peaks at index 135 within each quarter and returns to 100 at every boundary. Not measured data.

PNG4:3, 1600 × 1200, with the title, the source line and the attribution set in the image isoglu-2026-why-growth-compounds-fig01.png

Source and evidence

Each line names a claim related to this exhibit, its source, and how it was checked.

  • A DC89-C1 Flows adjust instantly, stocks do not, in the authors' own words: "while flows can be adjusted instantaneously, stocks cannot", and "It takes a consistent pattern of resource flows to accumulate a desired change in strategic asset stocks"dierickx-cool-1989-asset-stock
  • A DC89-C7 All asset stocks decay without maintenance spend, in the authors' own words: "preciates over time because of technological obsolescence; brand awareness erodes because the consumer population is not stationary", since "R&D know-how de"preciates and "all asset stocks" decay "in the absence of adequate" maintenance expendituresdierickx-cool-1989-asset-stock

Grades: A, verified against the printed page of the primary source · B, primary source, text layer only · C, authoritative secondary · D, reported.

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APA 7

Isoglu, S. (2026). Accumulation versus activity, indexed over twelve quarters [Figure]. isoglu.com. https://isoglu.com/insights/exhibits/isoglu-2026-why-growth-compounds-fig01/

BibTeX
@misc{isoglu-2026-why-growth-compounds-fig01,
  author = {Isoglu, Sinan},
  title = {{Accumulation versus activity, indexed over twelve quarters}},
  year = {2026},
  howpublished = {Figure 1, isoglu.com},
  url = {https://isoglu.com/insights/exhibits/isoglu-2026-why-growth-compounds-fig01/},
  note = {From the essay {Why growth compounds, and activity doesn't.}}
}
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<figure>
  <a href="https://isoglu.com/insights/exhibits/isoglu-2026-why-growth-compounds-fig01/">
    <img src="https://isoglu.com/social/isoglu-2026-why-growth-compounds-fig01.png" alt="Figure 1: Accumulation versus activity, indexed over twelve quarters" width="3200" height="2400">
  </a>
  <figcaption>Figure 1: Accumulation versus activity, indexed over twelve quarters. Source: Modelled illustration. Parameters: gross accumulation 15%/quarter; decay 5%/quarter (net 9.25%); activity peaks at index 135 within each quarter and returns to 100 at every boundary. Not measured data. <a href="https://isoglu.com/insights/exhibits/isoglu-2026-why-growth-compounds-fig01/">View exhibit</a>.</figcaption>
</figure>