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TIME WEIGHTED RETURNS VS MONEY WEIGHTED RETURNS (GUEST POST)

TIME WEIGHTED RETURNS VS MONEY WEIGHTED RETURNS (GUEST POST)

This article, Time Weighted Returns Vs Money Weighted Returns was originally posted here. He is a veteran community member on InvestingNote, with username known as ThumbTack Investor.

 

time_money

TIME WEIGHTED RETURNS VS MONEY WEIGHTED RETURNS

I think probably 70% of the people here don’t really calculate their returns.
Certainly not the traders with multiple transactions, cos it is a mammoth task doing so.
The vast majority of the remaining 30% are probably calculating it wrongly (Wrongly, that is, if you are using your ROI and comparing it to active managers)

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