Understanding CAGR for this portfolio

Here are the key takeaways from this lesson:

• Small differences in CAGR create massive long-term outcomes, 18% vs 8% can mean over $1M more over 10 years with the same starting capital and contributions.
• Compounding is the real driver of wealth, improving your investment vehicle even slightly has a far bigger impact than trying to optimize short-term trades.
• Monthly returns must be viewed in context, a 4% month is an outlier (equivalent to ~60%+ annualized), while ~1% monthly is normal and still powerful long-term.
• Focus on long-term averages, not short-term noise, individual months don’t matter, what matters is staying consistent and letting compounding play out over years.