Read? CAGR vs. Average Annual Return: Why Your Advisor Is Quoting the Wrong Number
I have been seriously recording my transactions; tracking and measuring my portfolio performance since Jan 2000.
My portfolio XIRR (CAGR) since Jan 2000 and Nov 2008
XIRR since Jan 2000 as on Tuesday (25 Oct 2011) market closing = 9.9%
Historical XIRR since Jan 2000: Lowest on 27 Oct 2008 at 3.0% and highest on 11 Oct 2007 at 23.5%
XIRR since Nov 2008 as on Tuesday (25 Oct 2011) market closing = 12.6%
Historical XIRR since Nov 2008: Lowest on 4 Oct 2011 at 10.6% and highest on 2 Feb 2011 at 22.7%
I learned two important points for sustaining XIRR:
- Don't lose too much money on losing stocks.
- Can't let cash rotting in the bank for too long.