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?