Performance in 2012

[cif5000]

I will rather have $300,000 in absolute return than 30% XIRR on $100,000 average capital. Likewise, I hope I can be profitable every year regardless of the index performance.

That'd be closer to 300% XIRR? You probably meant $30,000? Or $1Mil avg capital?
If so, I know what you must be trying to say and that's why I'm sticking to my own method of computing my performance which relates closer to my changes in Net Worth...

I mean a 30% XIRR on $100k average capital gives only a $30k return. Compare that to a $300k return on whatever capital (e.g. $3m), I would rather be the latter. Sure, $300k on $3m gives only a 10% return but that's real $$$ that can be used.

As mentioned previously, the % is useful to gage if one is competent enough to pick stocks (as a serious hobby) and preferably use it to gage one over a period of time. After that, it is the $$$ that counts (as a livelihood).