If one invest in individual stocks, one should track its performance relative to an index such as the Straits Times Index (STI), using metrics such as IRR here. If you under-perform the index, why bother picking stocks when you can achieve better performance by investing in the STI?
I tracked my returns using IRR (dollar-weighted average) and Modified Dietz Method (time-weighted average). The time-weighted performance is compared to the SPDR ETI ETF (with dividends payout included).
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