Wednesday, September 22, 2010

My Returns?

I got a comment from a reader today with regards to my investment returns, here's what he/she had to say:

probably making a mistake somewhere...
in one place you claim a 19.5% AR as of Mar 2010 and in another place you claim 13.4% AR as of Jun 2010
- 2006-2010 19.5% beats the best of the best of the best, gurufocus shows one investors with double digit 5yr average returns (10%), you are go(o)d!
- a 6% drop in one quarter in AR could only be caused by massive losses, what happened?

Well first let me say I appreciate the kind words!  Previously I've speculated that my out performance could simply be dumb luck, so for any readers who'd like to dive a little deeper the first thing you can do is go to the "My Returns So Far..." link to the right, which is under the "Pages" category.  I update this page quarterly, so it has my returns from 1/1/2006 through Q2 2010.  If you'd like to verify my calculations you can use your friendly XIRR function in Excel.  Further, under the "Labels" category there's a link called "Returns," if you click on this it will pull up all my previous posts where these have been discussed.

As this reader correctly points out, my returns fluctuate like crazy - this is simply a biproduct of having a concentrated portfolio.  If you check the "Transaction Alert" link under the "Labels" category you can see what I've bought/sold and get a feel for how I've generated my returns (or for this year, lackthereof)!

Leave a comment if you have any questions, or if you prefer you can email me at