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May 27, 2025

The opposite of a casino

The stock market is the opposite of a casino. In a casino, the odds are rigged against you the longer you play. In the stock market, the odds shift in your favor the longer you stay invested. This chart illustrates the point clearly: while 1-year returns for equities can swing wildly—from +53% to -44%—the range narrows dramatically over time. Over 30 years, the worst annualized return for a 100% stock portfolio was still a solid +8%. Short-term volatility is the price investors pay for long-term compounding. At ECP, our investment approach is built on the same conviction: focus on quality businesses, invest with discipline, and let time unlock value. Time in the market beats timing the market. Stay invested, stay rational, and let time do the heavy lifting.

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