Tag Archives: 20 percent CAGR

Back to 20%

As mentioned in “HOW TO BEAT HEDGE FUNDS AND WARREN BUFFETT“, my annual average ROI (return on investment) or CAGR (Compounded Annual Growth Rate) was approximately 20% from 2009 to 2013.

After this, there were difficult years, with some that were negative. 2019 was a stellar year. 2020 is starting off with a bang as well.

Thanks to these, my annual average ROI is back to approximately 20%. This is for the period from July 2008 to January 2020.

But I hesitate to mention this because, as I’ve written in “FOLLOW BUSINESS METRICS, NOT STOCK PRICES“, the most important thing to follow are the business metrics of the companies, not the stock movement. But after 11 years, it should be okay to look at the stock movement.

Going forward, this CAGR will change. There will be more negative, flat and positive years in the future.