03-01-2013, 09:03 AM
omg, both XIRR and NAV are not perfect, why not just use both for comparison?
03-01-2013, 09:03 AM
omg, both XIRR and NAV are not perfect, why not just use both for comparison?
03-01-2013, 09:47 AM
(03-01-2013, 08:46 AM)specuvestor Wrote: I wasn't referring to excel functions. I was referring to the pitfall in the CONCEPT of IRR. XIRR is much easily to calculate as part-time investor, compare with NAV. XIRR should has a high correlation with NAV, both should show similar result over a year, which is what we did now. XIRR also useful for calculation of multi-years return, which you have already highlighted. The annualized issue can be solved by XIRR with year-end date as last entry, which has been discussed before in other thread.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
03-01-2013, 06:12 PM
Refer to Table A for performance of Reits and Table B for performance of Property Stocks in 2012.
http://www.remisiers.org/cms_images/rese...-daily.pdf Reits: Best Performer: Frasers Commercial Trust (+78.4) Worst Performer : K-Green Trust (+13.8%) Property Stocks: Best Performer : Wing Tai (+97.4%) Worst Performer : St****** (+ 2.7%)
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
03-01-2013, 06:26 PM
The story of how much you make or loss investing in stocks is not measured by year by year only. i think most important measurement is the first day you invested until now, how much you make or loss. What is your total assets and FCF UTD? Have they increased or decreased? i found in my first year in "de-accumulation" phase seems to be about minus $15,000 to 20,000; quick estimation only. That is we have more time to spend then when we were accumulating. Of course, it's does not mean i stop investing. Only now it seems harder without some capital replenishment from work.
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.
03-01-2013, 06:43 PM
(03-01-2013, 06:26 PM)Temperament Wrote: The story of how much you make or loss investing in stocks is not measured by year by year only. i think most important measurement is the first day you invested until now, how much you make or loss. What is your total assets and FCF UTD? Have they increased or decreased? i found in my first year in "de-accumulation" phase seems to be about minus $15,000 to 20,000; quick estimation only. That is we have more time to spend then when we were accumulating. Of course, it's does not mean i stop investing. Only now it seems harder without some capital replenishment from work. Yes. This is the best approach and is how i am tracking on daily basis using spreadsheets. I started tracking since about May 2011. So looking at STI was at 3168 to now 3224. So STI grew about 1.7%. Dow grew by 7.2% same period. My net worth (property, equities, cash, bonds, etc) increased by 8+ to 9% in the same 1.5+ year period. So on this basis, i am quite happy and i think it means my more active portfolio allocation methods seems to work. See how it works in the years ahead..... Fingers crossed.
since XIRR seems to only capture performance of money in the market (i.e. while holding the stocks), and not out of it, is it right to conclude that it almost always will show a slightly (or significantly at times) higher/worse returns vs NAV method? This is because the cash drag can be quite significant, depending on investment style.
03-01-2013, 07:32 PM
Wee, not true in the sense the tool cannot prevent you from pulling the cash in or out. If you like cash to drag u like a "fixed" fund, u can choose to have it inside after stock sale.
Cory
03-01-2013, 08:12 PM
03-01-2013, 09:22 PM
(03-01-2013, 06:12 PM)Boon Wrote: Refer to Table A for performance of Reits and Table B for performance of Property Stocks in 2012. I had avoided property stocks and Reits in 2012, especially those property developers. It seems it is not a right choice on hindsight
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
04-01-2013, 09:38 AM
(This post was last modified: 04-01-2013, 09:46 AM by specuvestor.)
(03-01-2013, 09:47 AM)CityFarmer Wrote:(03-01-2013, 08:46 AM)specuvestor Wrote: I wasn't referring to excel functions. I was referring to the pitfall in the CONCEPT of IRR. I'm not trying to be funny here but like I explained and Freedom has demonstrated (with an exaggerated example no less), IRR has well known inherent pitfall if you use short periods. Freedom is not delusional One year is considered short. http://finaticsonline.com/blog/2010/11/n...r_vs_mirr/ http://www.efinancemanagement.com/invest...return-irr http://www.google.com.sg/url?sa=t&rct=j&...5884,d.dGI I'm not saying that the figures that are posted in this thread are wrong, but that we have to be aware. I'm just trying to contribute some facts to the discussion between cory and freedom, if it is distasteful i apologise.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
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