Most investors look at their portfolio statement and ask one simple question: How much money did I make?
If the number is positive, they feel good. If it beats the market, they feel even better.
But your portfolio statement only tells part of the story.
Two investors can earn the same return and have completely different probabilities of achieving their financial goals. One may be taking significantly more risk than necessary, while the other has carefully structured their portfolio to maximize long-term success.
The difference isn’t simply what they earned. It’s understanding the risks taken to achieve those returns.
When it comes to investing, returns matter. But they are only one piece of the puzzle.
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