tag:blogger.com,1999:blog-1442425444467777379.post3657537411674793761..comments2024-03-28T12:27:12.161+08:00Comments on Rainbow on FI: CAGR, XIRR simplifiedRainbowhttp://www.blogger.com/profile/17762360552800572152noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-1442425444467777379.post-15198651066702433972017-01-31T14:56:54.098+08:002017-01-31T14:56:54.098+08:00Rainbow girl,
If you decide to spend the dividen...Rainbow girl,<br /><br />If you decide to spend the dividends or realised gains as opposed to keeping it as part of your Opportunity Fund, then treat these "spending" as cash withdrawals from your Portfolio - you do the reverse of cash injections in the XIRR function ;)<br /><br />XIRR is just a tool :)<br /><br />ROI, IRR, and CARG are proper England and Business Finance terminologiesSingapore Man of Leisurehttps://www.blogger.com/profile/13774067113884418001noreply@blogger.comtag:blogger.com,1999:blog-1442425444467777379.post-37058463748058995502017-01-30T23:35:33.861+08:002017-01-30T23:35:33.861+08:00Hi SMOL,
1) Yeah you are right! We can just use R...Hi SMOL,<br /><br />1) Yeah you are right! We can just use ROI so save the trouble of using XIRR to calculate the returns if it is single stocks and ROI can be easily found online.<br /><br />2) If dividend is taken and spent, then how do we fit it into the XIRR calculation? <br /><br />I think must add to the final portfolio value e.g. part of the $1500 (if using my table examples above)? PardonRainbowhttps://www.blogger.com/profile/17762360552800572152noreply@blogger.comtag:blogger.com,1999:blog-1442425444467777379.post-72164205197798757742017-01-29T22:46:00.513+08:002017-01-29T22:46:00.513+08:00Hahaha, no bad feeling.
We are just messing aroun...Hahaha, no bad feeling.<br /><br />We are just messing around ;)<br /><br />No wonder la i failed to comprehend. Pardon my poor England :)Bhttps://www.blogger.com/profile/09041255778427742477noreply@blogger.comtag:blogger.com,1999:blog-1442425444467777379.post-37481083987263357132017-01-29T18:51:20.864+08:002017-01-29T18:51:20.864+08:00Rainbow coin,
1. Cannot use XIRR together with P...Rainbow coin,<br /><br />1. Cannot use XIRR together with Portfolio in the same sentence and then say you leave out cash since you only measuring one specific stock ;)<br /><br />If you want to measure a particular stock investment performance, then a plain vanilla Return On Investment (ROI) will suffice. Why do we need to call it XIRR when we already have ROI?<br /><br />See? XIRR is not Singapore Man of Leisurehttps://www.blogger.com/profile/13774067113884418001noreply@blogger.comtag:blogger.com,1999:blog-1442425444467777379.post-29237280223773751612017-01-29T18:01:16.682+08:002017-01-29T18:01:16.682+08:00Hi Uncle8888,
Now I see how the correct XIRR is d...Hi Uncle8888,<br /><br />Now I see how the correct XIRR is derived. Must first 'isolate' the investment capital to minimize error and confusions.<br /><br />Stock Investment Portfolio = Current stock value at market closing price + Investible cash available = Capital + Realized P/L + UnRealized P/L<br /><br />Thank you so much. Happy CNY, huat ah!Rainbowhttps://www.blogger.com/profile/17762360552800572152noreply@blogger.comtag:blogger.com,1999:blog-1442425444467777379.post-49336648182030790792017-01-29T17:42:49.720+08:002017-01-29T17:42:49.720+08:00Read? XIRR/CAGR: Investor's true performance i...Read? <a href="http://createwealth8888.blogspot.sg/2012/06/xirrcagr-investors-true-performance.html" rel="nofollow">XIRR/CAGR: Investor's true performance indicator! (7) </a>Createwealth8888https://www.blogger.com/profile/08563834016250153049noreply@blogger.comtag:blogger.com,1999:blog-1442425444467777379.post-9388348045777395012017-01-29T17:10:28.274+08:002017-01-29T17:10:28.274+08:00Hi B,
Thanks for dropping by my blog with a thoug...Hi B, <br />Thanks for dropping by my blog with a thought-provoking comment. Start the poking rolling yeah!Rainbowhttps://www.blogger.com/profile/17762360552800572152noreply@blogger.comtag:blogger.com,1999:blog-1442425444467777379.post-75651686232135372017-01-29T17:02:27.763+08:002017-01-29T17:02:27.763+08:00Hi SMOL,
Happy CNY and Gong Xi Fa Cai!
Now can I...Hi SMOL,<br />Happy CNY and Gong Xi Fa Cai! <br /><br />Now can I poke you a bit? =P<br /><br />In Example 1, it's ok to enter -$800 as initial investment, just that must remember to include the -$200 when it gets injected later on as part of the investment. If it is an investment portfolio returns that I want to be measuring with XIRR, then my cash need not be 'all in' at the start, Rainbowhttps://www.blogger.com/profile/17762360552800572152noreply@blogger.comtag:blogger.com,1999:blog-1442425444467777379.post-60163798969859712102017-01-29T11:26:19.732+08:002017-01-29T11:26:19.732+08:00B,
LOL!
I'm not me "enforcing" any...B,<br /><br />LOL!<br /><br />I'm not me "enforcing" anything ;)<br /><br />Like I've said, its more a case of England comprehension than anything else. <br /><br />Annualised return is saying "Pink" - layman can understand.<br /><br />CARG is like saying "Magenta" - serious amateur or semi-pro.<br /><br />XIRR is using a specific Pantone colour code - Singapore Man of Leisurehttps://www.blogger.com/profile/13774067113884418001noreply@blogger.comtag:blogger.com,1999:blog-1442425444467777379.post-4441400639602322412017-01-29T08:05:18.681+08:002017-01-29T08:05:18.681+08:00Replying to SMOL comment, I dont think it is about...Replying to SMOL comment, I dont think it is about conveniently excluding the cash function. It is just about measuring certain returns from an investment that cash is being utilized from. Perhaps the understanding of the whole point of internal rate of return is wrong. But surely enforcing others to include cash is also a form of enforce slavery from your part that you dont understand what each Bhttps://www.blogger.com/profile/09041255778427742477noreply@blogger.comtag:blogger.com,1999:blog-1442425444467777379.post-75884065418290302592017-01-28T18:04:02.750+08:002017-01-28T18:04:02.750+08:00Rainbow girl,
A Caramel Sweet Happy CNY to you!
...Rainbow girl,<br /><br />A Caramel Sweet Happy CNY to you!<br /><br />Good of you to explain with examples the various permutations of calculating Annualised Returns ;)<br /> <br /><br />The problem with using this XIRR function in Excel is that some people (and some got studied business finance) "conveniently" forget to include these cash injections...<br /><br />It has more to do withSingapore Man of Leisurehttps://www.blogger.com/profile/13774067113884418001noreply@blogger.com