There are many ways to drive from Bedok to Changi Airport.

You searched Google Map which suggested two routes to you. What made you decide one route over the other?

Maybe you have chosen the expressway because there would be less traffic lights and the journey will be smoother, despite a slightly longer distance.

Some may consider the other route because he or she is more familiar with it, and moreover the distance is shorter.

Visualizing how the journey would pan out (potential traffic jam, frequency of traffic lights, etc) is second nature to drivers. However, we fail to apply this thinking to investing. Investors often emphasize on potential returns (destination) and overlook the volatility (journey).

Look at the chart below. Both strategy A and B give you the same returns. But the process of getting there is different. Strategy A has a lot more ‘twists and turns’, or academics ...