One stock - 2 different experiences!
Did you know that two investors can have completely different experiences with the exact same investment, just because they started investing at different times?
Let's take MercadoLibre for example - $MELI
An average annual return of 4% since 2021 (significantly lower than the S&P500)
An average annual return of 24% since 2020 (strong outperformance)
The same company, with the same fundamentals, but the results are completely different depending on the investment's starting point.
This is why I treat my investment portfolio as one system and not as a collection of 'individual bets'...
Each company generates a compounding effect according to its own timeline.
When one slows down, another accelerates, and over time, the overall basket continues to perform.
Conclusion: the compounding effect works best when there's no need to accurately predict when it will occur!