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.

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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
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Friday, 20 January 2012

XIRR/CAGR: Investor's true performance indicator! (3)

Read? XIRR/CAGR: Investor's true performance indicator! (2)

Read? My money works harder for me (4)

Why am I investing my hard earned money?

I don't invest as hobby. For hobby, I go fishing.

I come to stock market to make my money works harder for me so I will need to know how hard is my money working for me.

Can I afford to work less for money when my money is working harder for me?

How can I roughly know it?

This is where the past performance will provide some indication. Historical XIRR trending pattern across market cycles of Bulls and Bears will help to provide good insight.

Common question

Should we include investible cash in our portfolio XIRR?

What is investible cash?

Investible cash is the cash available for investing after selling stocks. Your excess Virgin cash sitting in your bank account should not be included as investible cash as it is still virgin since it has no "sex" with your favourites. But, once it has entered a stock; it is no longer virgin. LOL!

Portfolio Value = Capital + Realised P/L + Unrealised P/L
                        = Current stocks at market closing price + Investible cash available for investing in stocks.


I want to know how hard is my money working in the stock market i.e. to measure the productivity of my capital. XIRR over portfolio is the way to go and track it on daily basis and plot it as a line graph. Seeing is believing!
Posted by Createwealth8888 at 07:45
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2 comments:

  1. Anonymous20 January 2012 at 18:08:00 GMT+8

    Hi CW,
    You are right. Whenever i say i invest for so long that it is becoming like a hobby to me, a lot of people misunderstand. Actually hoh, i mean i have done it for so long if i don't treat it like a hobby then what? "Siang"? No more investment passion in me? Die liu. How to keep on going for life? For me treat it like a hobby lol. In fact better treat it like daily things i like to do. Of course must try to make $$$ in every trade.
    HA!HA!
    Cheers!

    ReplyDelete
  2. Createwealth888820 January 2012 at 18:51:00 GMT+8

    Hobby can be expensive. LOL

    ReplyDelete

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