I have been struggling deciding on how to measure progress of Turtle Portfolio as I've been adding $888/month to the portfolio. If I measure strictly based on net worth, it has jumped by 99%, measuring against KLCI 45% gain. This is not a fair comparison because the net worth increase mainly due to saving. So I decided a very simple measurement that is measuring to a target of 10% annual compounded gain.
This portfolio started with $3,000 with about $ 888/month saving, the net worth as at 31 December 2009 has grown to $23,848. Annual compounded return is 5.22%. I could be happier if I can meet the 10% CAGR but coming out from a great crisis with 5.22% is something I feel that I need to be realistic.
Going into 2010 is going to be even more challenging as stock picking, timing plus a little bit of luck are absolutely critical, in order not to fall too far behind of 10% CAGR target.
See you in 2010.
Hi! I'm a new kid on the blog. I like your postings. 10% gain per annum is enough for me. Compounded gain will be 100% after 7 years.
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Perhaps use a time-weighted calculation to compute your return each month? just a suggestion
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