Latest version of the famous J.P. Morgan graph:
They estimate the returns for "average investors" from mutual fund flows. My return for this period was 6.12% (USD return). It's good that I am way ahead of the average investor but not good that I am behind a 60/40 portfolio (with no fees).
For a while now, I have been tracking these 20 year returns. Here is a graph with rolling 20 year USD returns for my portfolio and some key indices:
Each datapoint is the return for the 20 years up to that month. I started investing in 1996 and so the first observation is for September 2016. While I used to be worse than the median hedge fund, in the last couple of years my 20 year track record is a little bit better than the hedge fund index. I like to think it is more important to perform well the more money you have to invest :) In other words,
dollar-weighted returns are more important than time-weighted returns.
1 comment:
Looks like you volatility may have increased relative to the other indices in recent years, so have your risk adjusted returns actually improved compared to those benchmarks, or have you just boosted returns by accepting more risk?
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