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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