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!
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11 hours ago
Hi CW,
ReplyDeleteYou 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!
Hobby can be expensive. LOL
ReplyDelete