What should be the primary focus when calculating gains from investments over different periods?

When calculating gains from investments over different periods, the primary focus should indeed be on the percentage increase in value over time. This metric provides a clear understanding of the performance of an investment relative to its starting value, enabling investors to evaluate how well their investments are growing or declining.

The percentage increase accounts for the time horizon of the investment and normalizes the growth across different periods, making it easier to compare investments with varying durations. It offers insights into the effectiveness of the investment while also factoring in market volatility and changes in value over time.

This approach is particularly useful as it allows for objective comparisons between investments and minimizes the effects of compounding and other variables that can obscure a straightforward evaluation of profitability. By focusing on percentage change, investors can make informed decisions based on a clearer picture of gains.