Wednesday, February 15, 2006

5 year Early Riser Portfolio Performance

I got some pretty compelling information from Quicken last night. I looked at my portfolio's performance for the past 5 years and how it compares to the Russell 3000 (I had to pull the Russell information from here). The key statistics:


  • Annualized Return: 5.3% (1.6% for Russell 3k)
  • Average Annual Return: 7.3% (3.7%)
  • Compounded Monthly Return: 0.434% (0.13%)
  • Average Monthly Return: 0.55% (0.22%)
  • Monthly Return Standard Deviation: 4.83% (4.37%)
  • Correlation to Russell 3000: 0.794

Looks pretty good to me. I beat the market return by 130% (Russell 3000 being a pretty good benchmark) and with only a 10% increase in risk. A few other ratios can tell us if I'm ready to quit my job and become a hedge fund manager...

Not too bad, but I think I'll keep my day job. I graphed my monthly return, a 12 month trailing standard deviation, growth of $1 invested and the growth of $1 in the Russell 3000. Click the image to see a readable image.Posted by Picasa

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