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Measuring your portolio's results

posted Jan 12, 2016, 10:24 AM by Tim Isbell
Many people buy and sell investments based on articles they read, advice from a professional, and their theories. They try to time their buys and sells. They have anecdotes of gains that encourage them, and of losses that they try to forget. But if you ask for their asset allocation between stocks and bonds, they need to go away and tally it up - despite that it determines 80% of their return. They have no way to assess whether their investing work adds or subtracts value beyond what they would undoubtedly receive from buying and holding a single, balanced, index mutual fund.

To learn how to compare your actual results with a meaningful benchmark, check out Portfolio Evaluation.

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