advice and tips finance

CAGR compound annual growth rate of one of my IRA account

This IRA account was a bit unusual, as I took some meaningful losses earlier on. Then from 2017 (maybe a little bit more earlier, but I only have the balance history since Jan 3, 2017), things started to look up. In last 3.5 years, the CAGR is about 54.54%. My bigger winner during this time was $HUN, and more importantly $OKTA. This is the chart.

And the formula to do it via Google chart. Basically I imported the CSV (downloaded form broker website) into google sheet, and used the default chart, and added the formula for CAGR compound annual growth rate. Last but not least, one may adjust the formula a bit (maybe retype it), in my case, I used this formula: power (end value / beginning value, 1.0 / number of periods) . The ^ symbol (at least as I copied and pasted) seems have some issues, so I used the math power function, which is same as the ticker ^ symbol here. The period is year here, as I was looking for the annualized return.

Last but not least, this does not depict the full picture of my personal investments. I made some dumb mistakes here or there, and also, I put most of my 401k money in stock mutual funds (some in S&P 500 funds).

(Update 07-21-2020) The annual return is 13.34%, as shown in the chart. There was two meaningful drops in last 12 months. For comparison, the S&P 500 was up 9.25 % in last 12 months and Berkshire Hathaway was down -6.65% in the same period (yahoo Finance chart here).

In retrospect, I did not do well when I trade too much. One reason for more trading is since last last year, TDAmeritrade stopped the trading fees. Rohinhood was free since its beginning (2015?) and I did decently well in its early days. Then I got into sort of slump. This is similar to my main trading account (IRA at TDAmeritrade), I did well in 2017 and 2018, perhaps early half of 2019 too. But was just so-so in last 12 months (again refer to my chart). Update: actually I did not do very well in 2017 (+25%), but I did exceptional in 2018 (up 100%), then followed by 50% in year 2019. Overall still decent.

By omaha

I am Serenity and Sophia's daddy.

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