A seasoned investor once shared an investment case: in 2011, they invested $1.8 million in a tech giant's stock, and 14 years later, the account grew to $34 million, with an annualized return of 25%.

This figure is indeed impressive, but there's an interesting discussion beneath it: this investor's total net worth is about $10 billion, so the $180,000 investment accounts for only 0.018%.

This raises a thought-provoking question—when we talk about investment returns, can we ignore the position size?

A high return rate indicates good stock-picking judgment, but if it's just a tiny fraction of the total capital, its actual contribution to overall wealth growth is limited. Conversely, even if someone invests their entire net worth, a 25% annualized return is still remarkable.

This case reminds us: when evaluating investment results, we shouldn't just focus on the percentage return; we also need to consider the principal size, risk tolerance, and capital allocation strategy. Comparing only the multiple of returns, like focusing solely on gains while ignoring risk sources, can lead us astray.