Vinod Kurup

Hospitalist/programmer in search of the meaning of life

Investment Performance 1996-2006

Here’s my 2006 Investment Performance update. My individual stock picks broke their 4 year winning streak versus the S&P500 and overall (including my 403b), I lagged the market by a couple percentage points. That makes for a pretty lousy year overall. So, is it time to switch tactics? Give in and stick all my money in an index fund? Some would say yes (or more like “YES, you IDIOT!”). I knew when I started this approach that there would be times where I would underperform, even for long periods of time, meaning 1-2 years. But, on the whole, I would come out ahead. Small cheap companies have always outperformed over the long run. I still believe that and will continue with this approach, at least until 2009, at which point I will have a 5 year track record to analyze. In the meantime, I’m not going to cry too much about a 12.8% gain.

Date Me VFINX
1996-2006 7.6% 8.6%
1996 22.7% 35.7%
1997 15.3% 28.6%
1998 15.1% 24.9%
1999 66.0% 26.1%
2000 -25.8% -7.4%
2001 -33.1% -12.3%
2002 -21.1% -22.1%
2003 31.7% 30.1%
[2004](http://kurup.org/blog/one-entry?entry%5fid=17065) 13.5% 11.7%
[2005](http://kurup.org/blog/2006/01/04/investment-performance-1996-2005) 13.2% 4.7%
2006 12.8% 16.0%

Notes: These are calculated using the XIRR function in OpenOffice. The XIRR function takes a series of cash flows in or out of an account and returns the internal rate of return for that account. It’s the best way to compare portfolio returns when investments or withdrawals are made on an irregular basis. The VFINX column shows how I would have done if I had simply invested all my money into VFINX, a low-cost mutual fund which tracks the S&P 500. This number will not match numbers you see posted for VFINX for a given year because it depends on the timing of my investments. Note that I include the cost of commissions in my performance, but not in VFINX’s.

Comments from old site

Maaaaaaaaannnnnnn! You STINK

What kind of investment performance is that?? (hee hee!) Keep the faith brother!! In the long run we will make out!!

From your fellow underperforming brother!

Gerald Cherayil 2007-01-20 10:24:46

Investor return

Hey Dog!

Can you help me get this software so I can also calculate my rate of return??

Gerald Cherayil 2007-03-04 18:05:09