tag:blogger.com,1999:blog-22517597.post1510382075895765677..comments2024-03-03T11:13:39.377+11:00Comments on Moomin Valley: More on Excess ReturnsmOOmhttp://www.blogger.com/profile/03440274434662150925noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-22517597.post-26777055213492297572008-04-15T13:03:00.000+10:002008-04-15T13:03:00.000+10:00The key thing is to know how much you are making p...The key thing is to know how much you are making pre-tax each month from investing/trading. Most people don't know this number. Once you have that data you can easily compute anything else you like. All you need to do is keep a record of portfolio value each month and how much you put in and out of the investment accounts. To get accurate pre-tax numbers any tax deducted at source also needs to be accounted for.mOOmhttps://www.blogger.com/profile/03440274434662150925noreply@blogger.comtag:blogger.com,1999:blog-22517597.post-20675562238126281012008-04-15T01:35:00.000+10:002008-04-15T01:35:00.000+10:00Great site. Have not started trading, but am cons...Great site. Have not started trading, but am considering. One vital issue for me is the accurate representation and tracking of account values and performances (long term success is never an accident).<BR/>I found your link via a recent comment at traderfeed. Very grateful to find guidance in calculating and understanding running valuations in global context.<BR/>Best Regards,<BR/>McCanMichael Sean Andersonhttps://www.blogger.com/profile/11901644102011217313noreply@blogger.comtag:blogger.com,1999:blog-22517597.post-12128521586709365922008-04-14T18:13:00.000+10:002008-04-14T18:13:00.000+10:00The returns are the total portfolio returns measur...The returns are the total portfolio returns measured in USD. A couple of years ago the the US and Aus rates were pretty close. They aren't now obviously :) That begs the question: "what is the appropriate risk-free rate for a global investor". If your beta is one, then the choice of risk-free rate doesn't matter as you deduct it from both your own and the market's return and it has no effect on the results. As beta deviates from one it'll make a bigger and bigger difference.mOOmhttps://www.blogger.com/profile/03440274434662150925noreply@blogger.comtag:blogger.com,1999:blog-22517597.post-3550081853601480552008-04-14T17:56:00.000+10:002008-04-14T17:56:00.000+10:00Are you only analysing your USD returns, or is the...Are you only analysing your USD returns, or is there some AUD returns included? Even if you are converting all the final figures into USD values, wouldn't your weighting towards AUD denominated equities mean that the US 90-day treasury rate isn't a totally appropriate proxy for your risk-free rate? Perhaps you should be using a weighted average of the US rate and the AU equivalent for your calculations?<BR/><BR/>I'd be interested to work out my own "alpha" - but unfortunately my paperwork for my investment history isn't up to scratch. I have enough trouble working out my CG for tax returns, and only have a "ball park" estimate of my overall rate of return ;)enoughwealth@yahoo.comhttps://www.blogger.com/profile/09371028394685288035noreply@blogger.com