Investment Performance: Why consistency is king, Part 6

High volatility of returns is a drag on long-term performance.
The bottom line is this: averaging returns does not tell you what you get in the end. The only number that matters is the rate of compounding, the compound annual growth rate (CAGR).

Paradox: Gaining More by Losing Less

Well, it’s not really a paradox. It’s just math, but still, Alliance Bernstein explains:
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