Puru Saxena: Volatility is not risk, long-term CAGR is key

Puru Saxena: Volatility is not risk, long-term CAGR is key
Volatility is not risk in investing

Puru Saxena, investment commentator and ex-fund manager at FinTwit, challenges the conventional view that volatility equates to risk, emphasizing the importance of long-term compound annual growth rate (CAGR).

Saxena supports this perspective by citing Warren Buffett, who prefers achieving higher but variable returns over lower, smoother ones.

Saxena previously highlighted an upward trend for tech benchmarks, noting his portfolio’s focus on leading growth stocks and an AI rebound in growth stocks lead as NDX and QQQ trend higher. He has also compared AlphaTarget's 75.5% gain since inception with the S&P 500’s 44.6% performance, citing the benefits of research-led stock strategies in AlphaTarget achieves 75.5% gain versus 44.6% for S&P 500, Puru Saxena notes. These observations build on Saxena’s emphasis on return-driven investment approaches.

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