Comments on: Beating the S&P 500, part 2 http://www.moolanomy.com/119/beating-the-sp-500-part-2/ Personal Finance. Investing. Wealth Building. Mon, 22 Mar 2010 01:29:36 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Pinyo http://www.moolanomy.com/119/beating-the-sp-500-part-2/comment-page-1/#comment-514 Pinyo Sun, 09 Sep 2007 17:55:34 +0000 http://www.moolanomy.com/119/beating-the-sp-500-part-2/#comment-514 Did some more research. What I've used is actually Holding Period Return (HPR), not Time Weighted Return (TWR). Did some more research. What I’ve used is actually Holding Period Return (HPR), not Time Weighted Return (TWR).

]]> By: Pinyo http://www.moolanomy.com/119/beating-the-sp-500-part-2/comment-page-1/#comment-511 Pinyo Sun, 09 Sep 2007 14:54:10 +0000 http://www.moolanomy.com/119/beating-the-sp-500-part-2/#comment-511 Jonathan - welcome to Moolanomy. I actually didn't know what dollar-weighted return and time-weighted return are and had to Google it. I assume your question applies to how I measure my portfolio performance and not the S&P. If I read the definitions correctly, I used time-weighted return. Basically, I treat any net new money added for the entire year as if it's been there for the whole year. So, if I add the money every 2 weeks and it's a trending up year most of my money did not have as much time to grow that year and will underperform. Does this answer your question? Jonathan – welcome to Moolanomy. I actually didn’t know what dollar-weighted return and time-weighted return are and had to Google it.

I assume your question applies to how I measure my portfolio performance and not the S&P. If I read the definitions correctly, I used time-weighted return. Basically, I treat any net new money added for the entire year as if it’s been there for the whole year.

So, if I add the money every 2 weeks and it’s a trending up year most of my money did not have as much time to grow that year and will underperform.

Does this answer your question?

]]> By: Jonathan http://www.moolanomy.com/119/beating-the-sp-500-part-2/comment-page-1/#comment-504 Jonathan Sun, 09 Sep 2007 08:57:34 +0000 http://www.moolanomy.com/119/beating-the-sp-500-part-2/#comment-504 I'm a bit confused. Are you using your dollar-weighted return, or time-weighted return here? I’m a bit confused. Are you using your dollar-weighted return, or time-weighted return here?

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