Index

Finance · Leverage: average vs long-run growth

The borrowed bucket

Borrow two buckets for every one you own and pour all three into a market averaging 7% a year. Do you end up with more water than with one bucket?

You pour your own bucket and borrowed ones into a market averaging 7% a year, and the lender wants every bucket back. The panels show the average year, long-run growth, and how often the lender sold you out over 200 paths. Notice where growth turns.

Board: The Borrowed Bucket →

On a narrow screen the three panels stack below the two dials, and the table scrolls sideways.

try this Drag Buckets per bucket you own from 1x to 4x and watch Long-run growth rise, peak, then fall.

Included with a plan

This lab is included with a plan. The first three lessons of every track are free, with their boards and videos. A plan unlocks every lesson, board, video, lab and paper for one price.

View plans →Already a member? Sign in