The Joys of Compounding: The Passionate Pursuit of Lifelong Learning, Revised and Updated (Heilbrunn Center for Graham & Dodd Investing Series)

by Gautam Baid

An investor with 14 percent average annual return (20 percent, 40 percent, 20 percent, −50 percent, and 40 percent) over a five-year period underperforms someone with 9 percent average annual return if the latter is consistent every year.