Hot Diggity Damn!
Dec. 26th, 2010 02:47 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
errantemberI just sat down to calculate my Rate of Return for my investment portfolio, which I've been managing myself for about 6 years, for 2010. That formula is pretty simple:
(Money at end of year - Money at beginning of year )/ Money at Beginning of Year.
My Rate of Return for 2010 is 50%, based on the formula above!
By comparison, the value of the S&P 500 Index, one of the three major market indices, has only increased 11.82%, based on it's value at the beginning of the year vs. it's value now. If you add in dividend payouts, that total 13.68%.
Realizing that the current "market value" isn't the same as the money I would have in a near-worst-case scenario, I re-did the calculation based on very conservative estimates for some of the variables.
That put me at a minimum of 40%.
Also, a fairly sizable portion, one I'm willing to lose, is invested in a penny stock that could either go gangbusters or disappear tomorrow. If that stock dropped to zero tomorrow, however, I would *still* be up over 15% for the year.
(Money at end of year - Money at beginning of year )/ Money at Beginning of Year.
My Rate of Return for 2010 is 50%, based on the formula above!
By comparison, the value of the S&P 500 Index, one of the three major market indices, has only increased 11.82%, based on it's value at the beginning of the year vs. it's value now. If you add in dividend payouts, that total 13.68%.
Realizing that the current "market value" isn't the same as the money I would have in a near-worst-case scenario, I re-did the calculation based on very conservative estimates for some of the variables.
That put me at a minimum of 40%.
Also, a fairly sizable portion, one I'm willing to lose, is invested in a penny stock that could either go gangbusters or disappear tomorrow. If that stock dropped to zero tomorrow, however, I would *still* be up over 15% for the year.
