People love to say "stocks return 10% a year" like it's a smooth escalator ride. Reality check: over 98 years, the market landed within 8-12% exactly four times. Four.
Most years you're getting crushed or flying. 30% up. 20% down. 15% up. Flat for three years. Then suddenly 40% in one run.
Compounding isn't a steady drip. It's lumpy, chaotic, and impossible to time. The winners are the ones who stick around through the mess and let the outlier years do the heavy lifting.
If you can't handle the lumpiness, you won't capture the average. That's the game.
Most years you're getting crushed or flying. 30% up. 20% down. 15% up. Flat for three years. Then suddenly 40% in one run.
Compounding isn't a steady drip. It's lumpy, chaotic, and impossible to time. The winners are the ones who stick around through the mess and let the outlier years do the heavy lifting.
If you can't handle the lumpiness, you won't capture the average. That's the game.
