NW-Bound
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 3, 2008
- Messages
- 35,712
About comparing oneself to W & W, in recent years sometimes I beat them, some other times not. But what is the longer-term performance? In the short run, anything is possible. An AA like mine with more international stocks means larger up/down, and that's the nature of the beast. But over a longer period, the question is whether people who are willing to stomach the up/down get a better return. I mean that in the long run, perhaps we can even compare funds with different AA, or rather different investment styles, to see what works better. But then, we do not know how long is long enough for such comparison to make sense, but I guess 10 years should be reasonable.
Looking at the OP, the 10-yr annualized performance of Wellington was 7.97%. Compounded over 10 years, you would slightly more than double your money. I looked at my daily log of investable accounts, and saw that I trailed it slightly, if counting from 2004 to 2014. However, I retired 2.5 years ago, and prior to that worked sporadic part-time, although my work was highly compensated. It meant that my cash inflow/outflow was highly variable and in addition I also bought a 2nd home. And my children were in college then. While I logged the daily value of my investable accounts, I did not track expenses until 4 years ago.
So, accounting for cash inflow/outflow was a really tough job that at this point I am not going to attempt. I started a thread about my performance in comparison to Wellesley a while back, and I could not reach a conclusion. Hence, I cannot vote in this poll.
Looking at the OP, the 10-yr annualized performance of Wellington was 7.97%. Compounded over 10 years, you would slightly more than double your money. I looked at my daily log of investable accounts, and saw that I trailed it slightly, if counting from 2004 to 2014. However, I retired 2.5 years ago, and prior to that worked sporadic part-time, although my work was highly compensated. It meant that my cash inflow/outflow was highly variable and in addition I also bought a 2nd home. And my children were in college then. While I logged the daily value of my investable accounts, I did not track expenses until 4 years ago.
So, accounting for cash inflow/outflow was a really tough job that at this point I am not going to attempt. I started a thread about my performance in comparison to Wellesley a while back, and I could not reach a conclusion. Hence, I cannot vote in this poll.
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