Long term portfolio compounded average return

[Werner_1]

who here has a long term portfolio and knows the CAGR of the overall portfolio over the years? anyone keen to share?

[SimonPB]

about 26.2% over last 20 years in my long term 'til death do us part' portfolio .. helped in no small part by a few flyers such as CPI, DDT (sold at 6480c)

[Werner_1]

Thanks Simon, thats great, its only to tell you mine, i achieved 23% CAGR over the past 9 years. Since i changed my logic to a more 'to-death-do-us-part' portfolio as well the performance drastically improved! EOH is my biggest winner, but CPI, APN, WHL have been among the contributors.

[SimonPB]

I never run the numbers but I suspects if I removed the top few performers return would be way lower .. so in part it about getting those few real winners (and we do that by luck and that comes from modest diversification), and then holding on for a long time ..

[Werner_1]

I agree 100% with you on that! Its a huge mission now for me, but when I get time I want to load all the portfolio holdings data into a database where I can run all sorts of analysis with ease, but now I need to go through 9 years of monthly statements to be able to do this, but it could be worth the effort and quite insightful! Lets see if I get myself to do it... will let you know of the results then! I am also interested in creating a chart that will show the growth in my portfolio earnings (calculated from the EPS of the constituents), should be interesting to see how it grows.

[partridge]

Anyone who doesn't know the CAGR of their portfolio ( even discreet yearly returns ) is asleep at the wheel - which to be honest I can sometimes be convicted of being. But that said the functionality of this site - which is at best average - could be improved so as to facilitate this sort of calculation...I do have a problem with focusing on the top end figure- to me its more relevant to assess performance relative to some external standard - and that is not just an index. I prefer to use an inflation linked standard. So we all know that over a 10 year period you would expect equities ( in general ) to outperform inflation by 7-8 % pa. Going forward that may moderate - but that sort of measure is really the most meaningful - the lodestone. Alternatively an equity manager index would be acceptable. After all if you are not beating them - why not pack it in give one of them the money - and get a life?

[Werner_1]

I think having some more analysis on this site is a great idea! Some basic things should be so easy for them with the data in the database and really add alot of value for us as users! I watched a tv show once about a guy in London that each year took his net worth and tried to find something he could afford with it, this way he could see how he is growing, e.g. first a small apartment and many years later a mansion and a yacht or a jet, i guess that is something that could be cool to do to see the actual value to your bank account... just an idea.