You may face similar conversation below during your daily activities but not to the second stage of the conversation because we always measure the investment return based on the "Amount"
rather than the "Percentage" .
So, who do you think is the smarter investor? Scooby Doo or Son Goku (Dragon Ball)?
Investment return should always be expressed in "percentage" rather than in "amount" for comparison. In this example, Scobby's investment return is $1K/$5K X 100% = 20% wherelse Goku's investment return is $10K/$200K X100% = 5%. It is clearly Scooby has the higher investment return although the amount is way less than Goku.
Not only just the "Percentage", the investment return should be expressed in the "Annual Basis" too which is kind of a standard way of measuring investment return in the financial world. If you don't want to use "Annual Basis" as a base, it is okay too as long as the comparison has the same common ground (e.g. using 6 months to compare).
P/S: Anyone think that Goku is the smarter investor here? Yes, he could be - using money to generate even more money with low risk investment return? What is your opinion?