Money and Finance
I figured that we should take a look at portfolio returns so we can see exactly where we stand. If you don't know what you're actually returning then it's hard to tell if it's a good investment. While some people are focused on just capital gains and some just on dividends and others still on total return, you still need some measure of tracking your progress. I'm going to look at just annualized returns as calculated using the XIRR function in Excel using the cash flows and current portfolio values. The XIRR function returns the annual growth rate that when applied to all cash flows returns the portfolio value.
To calculate your portfolio return you enter your cash flows like so.
Read more »
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Money and Finance
Portfolio Returns - Part I
I figured that we should take a look at portfolio returns so we can see exactly where we stand. If you don't know what you're actually returning then it's hard to tell if it's a good investment. While some people are focused on just capital gains and some just on dividends and others still on total return, you still need some measure of tracking your progress. I'm going to look at just annualized returns as calculated using the XIRR function in Excel using the cash flows and current portfolio values. The XIRR function returns the annual growth rate that when applied to all cash flows returns the portfolio value.
To calculate your portfolio return you enter your cash flows like so.
Read more »
- Hussman Weekly Market Comment: Margins, Multiples, And The Iron Law Of Valuation
Link to: Margins, Multiples, and the Iron Law of ValuationThe equity market remains valued at nearly double its historical norms on reliable measures of valuation (though numerous unreliablealternatives can be sought if one seeks comfort rather than reliability)....
- Cash Flow Analysis: A Private Lesson From Staley Cates
Cates: When we do a longhand net present value calculation to discount back the free cash flows, we usually use eight years worth of cash flows at a particular assumed growth rate. Then [at the end of] year 8, we put the terminal multiple (almost always...
- Starbucks: Buy The Coffee, Wait On The Shares
Starbucks Corporation (NASDAQ:SBUX) has been the top performer in my portfolio compared to the internal rate of return for each position. I initiated a position in the company in April 2014 and have no complaints with the returns. In that time I've...
- Wmd Portfolio
For tracking purposes, I am launching the WMD Portfolio - a journey in search of Wide Moat Dividends. This is an idea tracking portfolio, rather than just tracking ideas as tickers its more interesting to simulate the process to see weight and growth...
- Building The Ideal Portfolio
If you're reading this article, chances are that you are interested in building your own investment portfolio but you have no idea how to begin. Well I'm attempting to assist you in that direction as far as I possibly can. When people are trying...