FernandoPM
9.4K posts

FernandoPM
@FernandoPM
Trader con 26+ Años de Experiencia. Ayudo a Personas que Buscan Opciones Conservadoras de Inversión que Generen Mayores Rendimientos sin Arriesgar su Patrimonio
Monterrey, N.L. Katılım Ocak 2009
277 Takip Edilen3K Takipçiler

Miami Hurricanes legend and Titans WR @XavierRestrepo1 showing up to my son’s flag football practice — and teaching him how to get a DB to bite on a route — was a pretty awesome surprise. Their team name, appropriately for the moment, is the Titans. Very cool move by a local guy!
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@WealthCoachMak What are the risks or downsides when underlying goes sideways or down for a couple of weeks/months?
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@InvestingVisual Is MWRR the same as ACB (average capital base)? Or are they different?
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Is my portfolio up 33%, 42%, 44%… or 57%?
It depends.
Why there is more to portfolio performance then meets the eye:
• Money-weighted rate of return (MWRR)
• Absolute return
• Exchange rates
• Other factors
Let’s break it down using my own portfolio as an example 👇
1 – What is MWRR?
It measures how your portfolio actually performed based on when you added or withdrew money. In other words, it factors in the timing of your investments. It includes:
• How much money you invested
• When you invested it
• When you withdrew money
If you’re tracking your portfolio, MWRR gives a more realistic picture of how you did, rather than just how the market or a stock performed.
In my case, the YTD performance of my portfolio based on MWRR is +32.84%. Now let’s check absolute returns.
2 – What are absolute returns?
They show how much your portfolio has grown or shrunk in total, without factoring in time or benchmarks.
• Simple: just the total % gain or loss
• Ignores time: 1 month or 10 years doesn’t matter
• Great for seeing profit/loss in a straightforward way.
Based on absolute returns, my portfolio performance is +42.30%.
3 – Exchange rates
An exchange rate tells you how much one currency is worth in another. This matters a lot if you invest in stocks that trade in a foreign currency.
If your local currency weakens vs. foreign → returns increase.
If your local currency strengthens vs. foreign → returns decrease.
My portfolio is Euro-based, but the majority of my holdings are in USD. Because the dollar weakened vs. the euro this year, it had a significant negative effect:
🔻 –11.73% based on MWRR
🔻 –14.58% in absolute returns
4 – Other factors
Dividends, transaction costs, and broker fees also impact results. There’s more to performance than meets the eye, right?
Conclusion
Always be critical when presented with performance updates. Personally, I prefer MWRR since it reflects the most realistic view. So, for my portfolio:
• +33% factors in timing (+44% excluding FX)
• +42% is simple gain/loss (+57% excluding FX)
Thanks for reading, I hope you found this helpful!
Cheers 🙏


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@InvestingVisual “Knowledge compounds over time”, what a great and true quote! 👍
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My clients pay me thousands to design cash flow dashboards for them
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El $SPX está haciendo el día de hoy nuevos máximos. Esto con una guerra en medio oriente, posibles afectaciones por un huracán y ante la incertidumbre de una elección sumamente cerrada en EEUU.
Enfoquémonos en lo que nos dice el precio y eliminemos el ruido externo.
#tradeprice
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