Members who wish to participate are invited to uniformly calculate their portfolio returns using our wiki's calculating personal returns spreadsheet. The spreadsheet can be either downloaded, or it can be used online within a Google account. To use it online:
- Sign into a Google account (if not already signed in).
- Make a copy of the online spreadsheet as follows: File -> Make a copy...
- The copy is private and can be modified at will.
An example return report can be found in this post.
THREE SIMPLE RULES -- WHEN REPORTING RETURNS
- Trailing returns must be calculated using our wiki's calculating personal returns spreadsheet.
- The asset allocation of the portfolio, and any slow change policy (such as "age in bonds"), must be disclosed along with trailing returns.
- A new spreadsheet must be used (e.g. restarting from zero) after every significant asset allocation change (except for a slow change due to a predetermined and fully disclosed policy, such as "age in bonds").
So, what are your uniformly calculated trailing time-weighted returns?
This is the first of a series of monthly threads dedicated to uniformly-calculated trailing* comparable time-weighted returns for portfolios using a fixed or a slowly changing (such as "age in bonds") asset allocation.
The objectives of this series of threads are:
- To help new members learn about the distinction between different type of returns, such as comparable time-weighted portfolio returns, incomparable money-weighted investor returns, and meaningless Beardstown Ladies returns.
- To help participating members (including myself) to stay the course by sticking to their asset allocation to avoid breaking their series of monthly posts and be forced to restart a new series from zero again. (See the rules).
- To learn about the variety of asset allocations held by participating members.
* 1 month, 3 months, 6 months, YTD, 1 year, 3 years**, 5 years**, and 10 years**.
** Annual compound returns.
The goal of the three simple rules is just to keep this series of threads useful and actionable.
Rule 3, in particular, is meant to help participants stay the course. Unfortunately, rule 3 affects me; I've been 50/50 stocks/bonds since 2014, but because of a significant change I made within my bond allocation in April 2018, I won't be able to report about returns going farther back than April 30, 2018, less than one year ago. This also means that I'll only be able to report about my portfolio's trailing 10-year return on April 30, 2028. I hope that I'll stay the course until then.