Portfolio Re-Structuring/25% CAGR quality-growth for next 2-3 years

Portfolio losses work geometrically against you just as returns work geometrically for you. That’s why its important to cut losses when restructuring your portfolio. Following is a theoretical example of various types of portfolio managers who managed to generate an x% of return in the first two years & incurred the same x% of loss in the third year. The impact on the CAGR over the span is geometric & not linear.

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