This thesis is based on the assumption that, if you’re wrong about your investment choices (lose all/majority of invested capital) then you’ll be able to make up money lost at a later time.
Yes, you’ll definitely have a chance to make up for the loss later on down the road. However, by the time you get to the point of “down the road” you’ll have lost the one thing that you could never get back and that is time.
During the time that you’ve erroronously invested your funds (you believe otherwise at the time) you’ve lost the opportunity to compound your investment with dividend paying stocks, CDs, bonds, real estate or any other income producing investment. You end up carrying all the risk with little to show in the way of reward as you finally and ultimately give in to the reality of your current investment choices.
