Read? Why you need a return on your capital (investment) above inflation?
See example 1:
Do we need to generate consistent positive return on capital year-on-year to have good XIRR?
Not really. But we need to win bigger more often than we lose.
See example 2:
So what if you can consistently generate positive return every year but get hit by one Big Bear. Your XIRR will be in sorry state. Beware of Bear!!!!
BTW, anyone still doubting the usefulness of XIRR as a tool to measure our investing performance over market cycles?
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