Cumulative and Annualized Rate of Return

In this post, I will explain: 1) What is a cumulative return? 2) How do you calculate a cumulative return using geometric linking? 3) What is an annualized return? 4) How do you calculat[...]

Geometric Linking Example and Explanation

What is Geometric Linking? Geometric linking is a fancy term used to describe how returns are combined over time.  For example, let’s say you are given 36 monthly returns for your investment por[...]

How To Calculate An Investment Return

How To Calculate An Investment Return In this post, we will review the basic terms everyone should know when it comes to calculating investment returns: market value, gain/loss and flows.  No worries [...]

Video Course

Welcome To My Free Online Investment Performance Class Video 1: Introduction to market values, gain/loss, flows and returns In this video, we use a story to describe the basic vocabulary needed to un[...]

Class Actions

In this post, I will teach you first what a securities class action is and then how these affect the returns calculated on your portfolio of investments. What Is A Securities Class Action? According t[...]

Sale of Equity Security

How Is the Sale of a Stock Reflected in Your Profit or Loss? There are 2 dates you first need to understand before we jump into how a sale is reflected in your profit or loss. On trade date: your ac[...]

Purchase of Equity Security

How Is A Purchase of a Stock Reflected in Your Profit or Loss? First, you should understand some basic vocabulary for a purchase transaction: Trade Date: The date the trade is made (usually on an exc[...]

Time Weighted Return vs. Internal Rate of Return

Time-Weighted Return (TWR) vs. Internal Rate of Return (IRR) When looking at your investment statement, you could see two types of returns reported: * Time Weighted Return: attempts to show you what t[...]

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