As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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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

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Value Investing
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Saturday, 17 December 2011

XIRR/CAGR: Investor's true performance indicator!

Read? You Will Never Know It May Make A Difference In Someone's Life or Thinking (3)

Track, measure and visualise

XIRR/CAGR is an investor's true performance indicator. It doesn't lie or mislead us into believing that we are better than the truth.

As of last Friday market closing price:

One year (2011) portfolio, XIRR is negative return of -4.5%! As an investor, this is a terrible return on my money and that is on top of losing the value of money due to this year inflationary rate at  5-6%. This is poor performance, it is F9 even though I was still putting real cash into my pocket. But, over 9 year since 2003, XIRR is +10.6% and over 12 years since 2000, XIRR is +9.5%

It is quite obvious that the current investing strategy may continue to fail in 2012. I may need some twisting in my investing strategy in 2012/2013 since more investors are becoming more gloomy.

Did you track, measure and visualize by XIRR?

It is an important tool to an investor. It is telling you the truth of your investing performance. It may also help you to revise and adjust your investing strategy to meet your investing goals.

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