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 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)