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Old 07-07-2007, 12:53 PM   #81
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It's important to calculate the "weighted" annual or semiannual return on your portfolio as a whole. If you want to look at only financial investments and all your assets are with one firm, their software may do that for you. Funds added during the period will complicate the issue so you need to make sure how the calculations are done. For example, if your assets increase by 10%, but half of that is money you added, your actual internal rate of return is more like 5%. If the assets are distributed among several different firms, or if you want to factor in other investments, you will need to use a business calculator or better, make a spreadsheet.

What I really want to know is the Internal Rate of Return of my entire portfolio, including fixed income, equities, cash, real estate, and alternative investments. So I calculate my Net Worth each year. Here is a (picture of) a spreadsheet that calculates the Internal Rate of Return on Net Worth. These numbers are invented.
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Old 07-07-2007, 02:08 PM   #82
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It's important to calculate the "weighted" annual or semiannual return on your portfolio as a whole. If you want to look at only financial investments and all your assets are with one firm, their software may do that for you. Funds added during the period will complicate the issue so you need to make sure how the calculations are done. For example, if your assets increase by 10%, but half of that is money you added, your actual internal rate of return is more like 5%. If the assets are distributed among several different firms, or if you want to factor in other investments, you will need to use a business calculator or better, make a spreadsheet.

What I really want to know is the Internal Rate of Return of my entire portfolio, including fixed income, equities, cash, real estate, and alternative investments. So I calculate my Net Worth each year. Here is a (picture of) a spreadsheet that calculates the Internal Rate of Return on Net Worth. These numbers are invented.
I do the same except that my calculation is a little different for ROI. My spreadsheet calculates the average monthly balance which gives a lower ROI (eg I get 13.48% against your example of 14.76% on line 2 of your example). I got the formula years ago from a Money Magazine article and when I compare with calculated figures on individual funds from VG in January it matches very closely for those accounts where I have a steady monthly sum going in. Where I have lump sums going in at random times my calculation and VG's vary more.

I don't really know that it matters that much, but it is the only way I have of estimating overall ROI
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Old 07-07-2007, 10:53 PM   #83
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I finally found my January statement. For my IRA only, since I didn't add any cash into the account (no Beardstown ladies here), YTD is 34.5% with 100% equities. I have to admit to being a little surprised, in a good way.
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Old 07-11-2007, 08:16 PM   #84
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18.4% YTD, 38.69% annualized (wouldn't that be sweet)
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Old 07-11-2007, 09:28 PM   #85
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18.4% YTD, 38.69% annualized (wouldn't that be sweet)
Even after the bloodbath of yesterday? You're trumping me.
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Old 07-11-2007, 11:43 PM   #86
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GMO has a market commentary section. GMO LLC - Home
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Old 07-11-2007, 11:59 PM   #87
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18.4% YTD, 38.69% annualized (wouldn't that be sweet)
You're the man!
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Old 07-12-2007, 12:01 AM   #88
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YTD is 34.5% with 100% equities. I have to admit to being a little surprised, in a good way.
A little surprised would be an understatement, to me at least. What equities would that be?
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Old 07-12-2007, 01:27 AM   #89
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A little surprised would be an understatement, to me at least. What equities would that be?
I have about 80 different stocks in my IRA. The two that I sold off for profit OMM and BEAV. Some of the other ones that I still hold are AMSWA, CSX, LYO, NOK, VSEA, TNP, SFL, COP, XON.
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Old 07-12-2007, 02:21 AM   #90
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Wow! They all did so well. No wonder.

I could find anything on OMM, XON. Wrong spelling?
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Old 07-12-2007, 09:57 AM   #91
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Wow! They all did so well. No wonder.

I could find anything on OMM, XON. Wrong spelling?
OMM was bought out. XON should have been XOM if I could type correctly. More importantly, the rest of the stocks in the portfolio didn't do poorly.
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Old 07-12-2007, 07:22 PM   #92
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Wow, Dow up 284 points today! That should help everyones % gains for the year. Life is good.
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Old 07-12-2007, 07:33 PM   #93
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Darn it...i'm stupid again today.
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Old 07-12-2007, 08:24 PM   #94
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The guy who sits behind me and has all his money in our company stock was happy today (it is a Dow component).
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Old 07-14-2007, 10:24 AM   #95
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The guy who sits behind me and has all his money in our company stock was happy today (it is a Dow component).
In the long run, he will be sad !

Just like all of my friends at Ford who still have 100% of their 401K in Ford stock and are still working !
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Old 07-14-2007, 10:36 AM   #96
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Or the folks from my old company, where we probably had around 15-20% of the employees financially independent for most of 1999. Very few kept that money and they've spent 7 years watching the stock languish.

It used to be a matter of awe creation to hold forth in the hallway or cafeteria telling everyone how you still had every single share of stock the company had given you over the last 20 years. When it was pushing $80.

I'm betting that through the current decade when it sat in the $12-15 area...not so much.

The lessons of diversification are well taken.
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Old 07-14-2007, 01:29 PM   #97
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My FIL kept every share ever given to him. The only shares he ever held. Did not even look at their value. When I said "Diversify", he said that would not be loyal to the company that employed him his whole life and now paid his pension.

Company eventually went bankrupt but his pension was protected.
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