The Surprising Math of Investment Returns: Why Losing Less Matters More Than You Think

When it comes to investing, most people focus on the upside: How much can I make? But smart investors also understand the other side of the equation—what happens when the market goes down, and how challenging it can be to climb back up.

This is where our Gather & Preserve™ philosophy comes in. It’s about helping you grow your wealth (Gather) while working to minimize the impact of market declines and maintain long-term progress (Preserve). And the math of investment returns makes it clear why that balance matters so much.

Let’s break it down:

If your portfolio drops 20%, you don’t just need a 20% gain to recover—you actually need a 25% return just to break even.

Here’s a simple example:

• You start with $100,000

• A 20% loss takes you down to $80,000

• To get back to $100,000, you need to earn $20,000

• But $20,000 is 25% of $80,000, not 20%

Why it matters

Losses are more powerful than we tend to think—mathematically and emotionally.

That’s why our Gather & Preserve™ philosophy isn’t about swinging for the fences. It’s about steady growth, disciplined strategy, and minimizing the kinds of setbacks that can derail your long-term goals.

A balanced, resilient approach

We work with clients to create portfolios designed not just to grow wealth over time—but also to stay aligned with their risk tolerance and financial goals through market ups and downs.

In short, we want your plan to work in real life—not just on paper.

If you’re unsure whether your current investment approach is positioned to Gather and Preserve™, or if someone you care about might benefit from a fresh perspective, Jackie and I are always happy to have a conversation.

Data and analysis does not represent the expected future performance of any investment product or strategy. Investments involve risks, including loss of principal.