Right. Your calculation is the VAMI. Its the hypothetical earnings if you didn't have to withdraw which is compounded but doesn't account for real world issues if you truly attempted to compound. You aren't CAGRing if the money isn't actually compounding, which in your case is not as you pay divorce lawyers and for your trophy fiance. Medallion isn't CAGRing at 70% even though they earn like 70%/year because each year they have to return capital to their partners (your hero's estate) to keep the fund below 6Bn.
how cute your god liked your post - gotta get those likes up son should have said your god mod right baron?
Fixed it for YOU maybe. You learn about it with observed hindsight. Then apply the same regularities "as they develop" in the future.
I would point to one philosophical question. First of all, it’s not a matter how much he makes. If it’s true of not, who cares. In my opinion, if you are great, you won’t make a statement what kind of genius you are. If you good, no need to prove it to the gang . My question is different. At which point should you decide YOU SHOULD STOP ? When do you have enough, what is the criteria ? You become addictive and like what you are doing, should you stop anyway?
The calculation will be the same if there are no withdrawals. But you had withdrawals so your actual compounded returns are lower (because those withdrawals hurt your compounding) and likely helped your average %age returns with less capital to manage (but that's not the issue). 42% VAMI is impressive, especially if you could really continue your strategy at 100MM (assuming you put in 100k each year for 3 years at the beginning).