I thought it would be interesting to show a small table that outlines the issue with losing money, the figures below show what you have to ‘make back’ to get to break even depending on a certain amount lost.

LossReturn needed to regain original sum
-5.00%5.26%
-10.00%11.11%
-20.00%25.00%
-30.00%42.86%
-35.00%53.85%
-40.00%66.67%
-50.00%100.00%

It’s easy to see that it gets harder to get back to zero the further you fall, the most obvious example being that you need 100% growth to break-even if you lose 50%! Just something to keep in mind as you are investing or weighing up risk in the things you invest in.

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