📺🎓 Why Protecting Capital Matters More Than Making Money Please ❤️like, 🔖bookmark, and 🔁share with fellow growth stock investors In this educational Short, @1DannyStewart discusses one of the core principles behind @RevereAsset investment approach: protecting capital first. Most investors focus on returns. The problem is that returns alone can be misleading if you ignore drawdowns. * Let's say, if you lose 50% during a bear market, your capital is cut in half. Even if your account gains 20% the following year, you're earning that return on a much smaller base. Your statement may show a positive year, but the damage from the earlier loss is still affecting your long-term results. This is why professional investors pay so much attention to risk management. Every percentage point of capital preserved during a downturn allows more money to participate in the next recovery. A portfolio that falls 10% or 15% has a much easier path forward than one that falls 35%, 50%, or more. * Dan also challenges one of the core assumptions behind traditional investing models. Modern Portfolio Theory assumes returns follow a normal bell-curve distribution and that extreme market events are relatively rare. In reality, markets experience far more large moves—both positive and negative—than these models predict. These "fat-tail" events include major bear markets, financial crises, and sharp corrections that can erase years of gains in a short period of time. Investors who underestimate these risks often discover that recovering from large losses is much harder than generating them. * The market may go up over the long run, but wealth is built through compounding. Compounding works best when capital stays intact. So, the lesson is simple: you don't need to capture every upside opportunity, but you do need to avoid catastrophic losses. Protecting capital isn't the opposite of growing wealth—it is the foundation of growing wealth. * We now also have a new dedicated page for educational content. Check it out for more educational videos. ▶️https://t.co/3AUdKutiBU

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