I'm assuming most people focus on CAGR as a primary metric if younger and have time for their investments to grow. They may be less concerned (or unconcerned entirely) with drawdowns since ultimately growth is most important to them.
Others may focus on reducing max drawdowns if they're nearing retirement and can't afford to lose half their life savings in their 70s or 80s.
Has anyone focused on TIME TO DRAWDOWN RECOVERY? This is an interesting one to me. I realize this is most likely highly correlated with maximum drawdown, but then again it may not necessarily be. But let's say, hypothetically (exaggerated to illustrate the point):
Portfolio 1: same CAGR, max drawdown: 25%, time to recovery: 10 years
Portfolio 2: same CAGR, max drawdown: 95%, time to recovery: 2 years
I'm guessing more people than expected would take portfolio 2. That higher drawdown can be easier to stomach if you know it will recover more quickly than a lower drawdown that feels like it takes forever.
Would love to hear any thoughts or recommendations!