ManOnManOral Posted March 19, 2020 Share Posted March 19, 2020 550 has 1000 invested, his investment drops 50%. He now has 500 net worth. The market bounces back and moves forward. Value of his holdings increase 75%. He thinks he has gained 25% because he only lost 50 and it went up 75 the next year. Being he is stupid, he fails to realize that 500 x 1.75 is 875. 550 now has a net worth of 12.5% less. This does not take into consideration the funds he withdrew at the bottom so he could buy cat food to eat. Quote Link to comment Share on other sites More sharing options...
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