Yes, you should think about what is required to recover from a loss.

eg

10% loss requires 11% growth to recover

25% loss requires 33% growth to recover

33% loss requires 50% growth to recover

50% loss requires 100% growth to recover

66% loss requires 200% growth to recover

75% loss requires 300% growth to recover

90% loss requires 900% growth to recover

Losing 25% is recoverable in 5 years, but if you lose half or more, you’re in Tiger King territory.

Reply to this note

Please Login to reply.

Discussion

No replies yet.