"Compounding is non-linear." - Rich Brennan
Here's the whole game in one idea. A big positive pop permanently lifts the base your future returns grow from. Small losses don't undo that. Drawdowns and crashes do.
So the most aggressive thing you can do for long-term wealth isn't swinging for the fences. It's refusing to take the big drawdown in the first place.
Since 2008,
@KeithMcCullough has obsessed over WHEN to get out, not just what to buy. Bearish into the 2008 crash. Bullish in the spring of 2009. Cautious again the moment the Signal said so.
Every one of those was about protecting the base so the next pop compounds from a higher floor.
Preserve. Protect. Compound.
In that order.
Miss the first two and the third never happens.