I was just thinking about how to properly compare your investments.

Many people think it's enough to look at percentages, but it's not that simple.
CAGR, or the compound annual growth rate, is exactly the right tool for that.

Why is it called compounded?
Because it takes into account that your profit grows on its own.
When you reinvest the yields, next year a larger amount grows.
That's the magical effect that people often overlook.

Hi, let's simplify it.
CAGR actually tells you: if I invested for a certain period and wanted to know what my average annual return was, what would it be?
It's not the exact return for each individual year, but rather a representative number that helps you understand how your investment performed.

The formula is actually simple:
Take the value at the end, divide it by the value at the beginning,
raise it to the power of (1 divided by the number of years),
and subtract one.
Multiply the result by 100 and you have a percentage.

Why should this matter to you?
Because CAGR allows you to compare completely different investments on the same level.
Do you have a stock that grew over five years, and a token you held for two years?
CAGR will tell you which one actually brought you a better return.
It's the key to understanding whether your money is truly appreciating.

Long-term planning without CAGR is like navigation without a map.
You simply can't do without it if you want to invest seriously.