tag:blogger.com,1999:blog-9035393153530233175.post2337821552008357099..comments2023-09-26T11:21:10.819+02:00Comments on AnotherValueInvestor: Portföljavkastning (del 2)AnotherValueInvestorhttp://www.blogger.com/profile/11138819031996588248noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-9035393153530233175.post-62829170349574903502014-08-13T16:11:48.657+02:002014-08-13T16:11:48.657+02:00Yes, I understand that you want to estimate relati...Yes, I understand that you want to estimate relative return. I think you could do it exactly the way I described it (but just replace SIXRX with SIX30RX) to compare your performance vs. the index.Anonymoushttps://www.blogger.com/profile/06633440791427414196noreply@blogger.comtag:blogger.com,1999:blog-9035393153530233175.post-83343276143752806922014-08-13T08:23:57.207+02:002014-08-13T08:23:57.207+02:00I have taken a look at Your post. You are using CA...I have taken a look at Your post. You are using CAGR for estimating Your portfolio return. I use CAGR for calculating company EPS-growth, but not for portfolio return. My main reason not to apply CAGR for calculating portfolio return is that CAGR does not account for cash flows (I am aware each cash flow can be calculated separately though, but I have not gotten around to check the accuracy of that method). <br /><br />However, of what I have understood by quickly glancing through a post or two of Yours, is that You are interested in absolute and not relative return. Assuming that goal, I can see CAGR making sense for You. <br /><br />My goal is different though, I want to estimate relative return and compare it to SIX30RX in order to (over time) determine whether I should dump/invest my holdings into Avanza Zero and let capitalism work for me or if I should invest my capital myself. So far, I am doing it myself.<br />AnotherValueInvestorhttps://www.blogger.com/profile/11138819031996588248noreply@blogger.comtag:blogger.com,1999:blog-9035393153530233175.post-70699351648435578632014-08-13T01:03:55.275+02:002014-08-13T01:03:55.275+02:00Thank you for a good blogg, it is most interesting...Thank you for a good blogg, it is most interesting to follow. I have my own view on how to calculate portfolio return (in relation to your part 1 post in this miniseries, see latest post on my own blogg).Anonymoushttps://www.blogger.com/profile/06633440791427414196noreply@blogger.com