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20-04-2014, 11:50 AM
(This post was last modified: 20-04-2014, 11:57 AM by corydorus.)
1-Jan-14 -5000 Buy Stock A
1-Jan-14 -15000 Buy Stock B
1-Jan-14 -30000 Virtual Stock (Idle Cash)
1-Jun-14 6000 Sell Stock A with 1K profit
1-Jun-14 -6000 Virtual Stock (added due to sale of stock A)
31-Dec-14 13000 Close Book Stock B value. Assume you lose 2K
31-Dec-14 36000 Virtual Stock Value (30K + 6K)
XIRR -2.01%
With idle cash considered into your portfolio (above) is a little tricky because if you lose money, the XIRR will reports a smaller loss due to you have a bigger fund. Well mathematically is right. it pays to do nothing sometimes.
Example below without idle cash measured.
1-Jan-14 -5000
1-Jan-14 -15000
1-Jun-14 6000
31-Dec-14 13000
XIRR -6.10%
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Only saw this thread recently. Many years back I have benefitted from d.o.g. sharing on the use of nav to compute portfolio's performance. The method makes sense to me and I have been using it till now. I also advocate to maintain a separate bank account for investment as this made tracking very much easier.
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Instead of a separate bank account just for the stock portfolio tracking, can we use a "Virtual Bank Account" that is 2 to 3 times the actual value of you stock portfolio to begin with? Such that your Virtual Bank Account" is always available for your portfolio tracking. Will this solve the idle cash tracking problem in the stock portfolio?
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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I guess it will add error in the tracking? Not sure if it will work but I feel that this makes the tracking more complex.
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04-05-2014, 02:11 PM
(This post was last modified: 04-05-2014, 02:11 PM by franko.yank.)
I target 20%-25% returns over long run, it can be done if the strategy is correct. IMO if after using so much time & effort to analyze stocks still end up <15% then might as well close shop buy a S&P500 or STI ETF, why waste time?
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04-05-2014, 03:20 PM
(This post was last modified: 04-05-2014, 03:25 PM by corydorus.)
Are you joking. Just using your lower estimate of 20% , after 30 years compounded you probaby own Singapore or a very famous man. I don't even remember many fund manager makes to the headline.
Able to get 15% consistently i will park all my money with you !
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(04-05-2014, 04:27 PM)yawnyawn Wrote: (04-05-2014, 02:11 PM)franko.yank Wrote: I target 20%-25% returns over long run, it can be done if the strategy is correct. IMO if after using so much time & effort to analyze stocks still end up <15% then might as well close shop buy a S&P500 or STI ETF, why waste time?
We have a Warren Buffett here, no doubt about it! The great man himself only managed to compound Berkshire's per share BV by 19.7% p.a. from 1965-2013.
No harm to set high target. With a much smaller AUM, beating current Mr. Buffett's performance isn't a unthinkable proposition. I asked myself a question, How will Mr. Buffett perform, with a AUM of just few million non-OPM? My guesstimate is around 40%.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡