As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Sunday, 29 January 2017

Track And Measuring Investment Portfolio, Cash Flow and Net Worth. No Illusion And No Ego Boasting!!!


Read? CAGR, XIRR simplified

With the above blog post; it has saved Uncle8888 from explaining the difference!

Uncle8888 has tracked and measured whatever that can be measured and mathematically presented so that he is fully aware what has happened with his investment in the PAST and what can be possibly done better in the future; and what should be avoided in the future.

No illusion. No ego boasting measurement. It is as comprehensive as possible e.g. XIRR, CAGR since portfolio inception in 1 Jan 2000, ROC, cash flow, win-loss, net worth, paper gains lost back to Mr. Market etc. All have been measured!

ROC is good measurement for each transaction.

CAGR/XIRR is good measurement for investment portfolio including idle or rotting Cash. No illusion over long measuring period e.g. over one or two decades of investing period.

Cash flow level is good measurement for sustainable retirement income for life.

Net worth Pie is good breakdown to forecast sustainable retirement assets for draw-down as cash flow when it becomes necessary.

Portfolio Management Pie is good indicator what could have been done better to achieve higher performance and what should be minimized or avoided in the next market cycle.

Cash is rotting in the War Chest earning little return; but it is premium paid to seek better opportunities or future multi-baggers.





Read? DBS : Sold @ $19.03


Read? Kep Corp : 478% ROC And Still Counting!!!









Why doing these extra?

It is all about knowing ourselves better, our PAST; working on the PRESENT for better FUTURE and avoiding or reducing those mistakes made in the PAST so the FUTURE won't be worse than the PAST.


It is worth Uncle8888's effort to do it as his outcome so far has shown it!

Who is still laughing now?







2 comments:

  1. CW,

    Welcome back and Happy New Year!

    What's with the "who's laughing now"?

    At your age, you still live life in accordance to what people think you should or should not do?

    If you are a KPI freak, embrace it!

    So what if I poked you carrying your sampan all the time even after retirement?

    We are all different ;)



    Eh, just saying (not a poke), I thought what big difference CARG and XIRR you can come up...

    "CAGR/XIRR is good measurement for investment portfolio including idle or rotting Cash."

    Nice to see CARG "accepted" as the equivalent of XIRR by you :)




    ReplyDelete
  2. Any way, almost all Fund Managers will use CAGR and not XIRR.

    the reason should be obvious to "Lau Chiew"

    i think CAGR is the more realistic to show your returns UTD for 10, 15,20...years

    ReplyDelete

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