I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com

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

Friday 24 July 2009

Measure, Measure, Measure

Read the Secret first ...


The Secret is out!

And Peter Drucker once said, “What gets measured, gets managed.”

So we need a tool to measure our Investment/Trading performance over long term e.g. 5, 10, 20 or even 30 years. For me, I use Average Annualized ROC (Return On Total Capital) to measure my performance and managed it for success.

Computing for the Average Annualized ROC is quite simple. All I have to do is to add the total Realized and Unrealized Profit/Loss and divide it by the Total Capital, and then divide it by the Number of years. Thus, the formula is:

Average Annualized ROC = (Total Realized + Unrealized Profit/Loss) / Total Capital / No. of Years

What is your goal for investing over long term? Mine is for Retirement fund.

Why should we need to evaluate our investment performance? The main reason is to perform an objective analysis of our investment performance to overcome self-deception or over-confidence and take a sober, non-emotional assessment of our investing returns and consider whether we are either under-performing or meeting our GOALS.

We have to remember that the only reason to invest is to create more wealth. If we are not building up more wealth over a period of time, then our strategies may not be effective, and we may have to seriously review and change strategies.

Insanity: doing the same thing over and over again and expecting different results. said Albert Einstein
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