CAGR expectation and experience

Though I started investing since 2005 but I have started tracking closely my returns from Dec 2012. You can check my PF returns here Govind's portfolio

Please note that mean reversion happens to any investor though his/her returns look great or abysmal low depending on the phase of the market he entered.

If an investor is new to market, over reaction to the above returns lead to underperformance over the longer term with respect to the market.

As long as one manages actively, has good quality stocks, a little luck with the timing, he/she can generate alpha over the longer term. Performance over the shorter duration cannot be extrapolated.

BTW 12% is a good CAGR. Please check what else you could have done better to generate 3% more to reach your target CAGR. May be % allocation, timing the entry/exit, asset allocation, staying contrarian, sticking to your investment philosophy etc

Did you add dividend yield to your total returns?

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