Triple-Digit Returns: Luck, Leverage, or Illusion?

As 2024 drew to a close, social media once again became a stage for self-congratulatory portfolio performances.

Accounts popped up touting returns that would make even Warren Buffett envious, with triple-digit gains dominating the conversation.

But here’s a reality check: many of these accounts only share during their good years, and in some cases, the numbers are simply fabricated.

There’s no point in beating yourself up for not achieving those results—most of them aren’t real or sustainable.

Let’s explore this phenomenon and its implications in depth. I’ll address three related topics:

1. Why Most Triple-Digit Returns Aren’t Sustainable

Achieving extraordinary returns like 100%+ in a single year requires a unique set of factors. Here are the main ways these returns might occur: