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 …