1W principal enters the crypto world, 3 cycles, each cycle earns 10 times the total principal, can earn 1000W in 12 years.
Question: What is the annual compound return rate?
The answer is: 78%
Next, if you earn 100% for 3 consecutive years, lose 55% in the 4th year, and then earn 25% in the 5th year, what is the annual compound return rate?
The answer is: only 35%
These two examples are actually very extreme, and most people can't achieve them, but the annual return rate is not as high as it seems intuitively, which shows how difficult it is to achieve long-term profitability!
So Buffett can rely on over 20% compound annual growth to be considered a god. Wall Street quant god Simons can achieve a long-term compounded annual growth rate of over 60%. It is not an exaggeration to say that it is the limit of human investment returns.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
The crypto world operates on a 4-year cycle.
1W principal enters the crypto world, 3 cycles, each cycle earns 10 times the total principal, can earn 1000W in 12 years.
Question: What is the annual compound return rate?
The answer is: 78%
Next, if you earn 100% for 3 consecutive years, lose 55% in the 4th year, and then earn 25% in the 5th year, what is the annual compound return rate?
The answer is: only 35%
These two examples are actually very extreme, and most people can't achieve them, but the annual return rate is not as high as it seems intuitively, which shows how difficult it is to achieve long-term profitability!
So Buffett can rely on over 20% compound annual growth to be considered a god.
Wall Street quant god Simons can achieve a long-term compounded annual growth rate of over 60%.
It is not an exaggeration to say that it is the limit of human investment returns.