Calculating Your Time-Weighted Rate of Return (TWRR)

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Information Calculating Your Time-Weighted Rate of Return (TWRR)

Title	:	Calculating Your Time-Weighted Rate of Return (TWRR)
Lasting	:	9.54
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Views	:	45 rb

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Comment from : @JustinBenderCPM

This is so well explained Much better than the CFA institute, IMHO
Comment from : @torrancedesaulniers7471

Amazing explanation, thank you! I have a question: if I divide my periods by months and add $1,000 three times in a single month on different days, can I simplify the calculation by totaling the $3,000, or would I need to break down the month by each date the $1,000 was added? Thank you!
Comment from : @juangomez2014

I saw around 3 videos before landing here none of them was this much clear thanks a lot
Comment from : @ksn98

That is an absolutely genius explanation I had a hard time understanding this concept until I watched this video Thank you for your time!!
Comment from : @hercules1345

well explained
Comment from : @hishamalhashmi7394

Don't we need to Root (^1/2) at the end (prior to subtracting 1 for the rate) when finding the geometric mean?
Comment from : @joytheboy7730

why we did not take the square root when we did the geometric linking, because in other example we take the square root, just like a geometric mean
Comment from : @yousifsalmoon3100

Thanks for the video I wish I knew TWRR didn't include cash inflows/outflows TWRR may be suitable for many except the investor who's either adding or removing money I would like to know which reporting scheme is the best from investors' POV It is easy to imagine two investors contributing the same amounts and yet have different balances in their accounts That would be a strong argument against using TWRR for most investors I wish the regulatory agencies took note of this GAPING HOLE
Comment from : @ramesherrabolu1590

There is no other explanation like this on YouTube Thank you!
Comment from : @edwardtolkachenko5362

the geometric link sub return equation is confusing
Comment from : @chansonjoy

Why can't we just calculate IRR using excel to get accurate return?
Comment from : @galinaskvortsova1924

very helpful
Comment from : @allthingsconsdrble

This made no sense tho I don't question the math The guy who bought at the bottom clearly has a higher return than others In fact, I would take the end number and deduct the contribution ($10,000) and get the percentage In this case, the blue's return is 1503
Comment from : @AlexanderDiArmani

👏
Comment from : @lh7766

Very helpful! Thanks
Comment from : @MrksDrxl

Fantastic, easy to understand explanation You're a champ, thanks!
Comment from : @muhammadsyahmi240

Bluths in the house Of course Buster would panic
Comment from : @paddyspub7928

preparing for my m6 exam and this is really useful for me to understand Time weighted rate of return
Comment from : @ee-sj8qr

Let's say I have an account open for 10 years For the first 9 years there was $0 in it Between year 9 and 10, I deposited 500k into it and earned a 10 rate of return that year Would the TWRR be 1 annually?
Comment from : @Azel247

Very Helpful video, Justin!!!
Comment from : @Aryan_singhal

I thought for TWRR for a period over a year we should use the geometric mean instead!
Comment from : @newmercies1

Great explanation 👏👏👏
Comment from : @seesharp3095

Champion explanation, wow!
Comment from : @yaravallirohit8014

Brother, you are amazing at explaining Keep up the good work!
Comment from : @OG-bb1bk

Hello, does it work with different sub-periods? Like 6 months and 16 months if there are withdrawals and increasing at different period of the yearbrThanks
Comment from : @Simon-te3gu

Great Video
Comment from : @hakansepik6280

Excellent Video! Thanks for posting
Comment from : @darrent2478

Thank you for explanations! It helped me a lot!
Comment from : @shadrinan90

Absolutely the best to the topic i have ever seen Easy to understand Perfect!!!
Comment from : @spamfrank8463

Justin and Shannon, the way you explain and present is stunning It gives anyone with an internet access the chance to learn complicated things easily The Millenials and younger people are given a treasure here on youtube Knowledge will make the life of many people easier, reducing suffering in some way Imagine at which level mankind could be, if even the kid in the back of beyond could fight his/hers way to prosperity just by utilizing knowledge from yt videos This is so cool!
Comment from : @coldavenue2325

Hello Justin, thanks for the detailed video, this is very helpful I do have a question, why do we still have to split the time period for Michael in your example at 3:27, since there were no contributions or withdrawals and when should we use TWR v/s Holding Period Return?
Comment from : @mohammedshabeer3920

This video is Helpfull
Comment from : @knowledgeupdate879

This is the clearest explanation Ive seen on the topic Thank you!
Comment from : @portfedh

Hello Justin, Thanks for you Video I have a quastion: How do you do these Animations? I like the effects for example the slow graph animation How are you doing these? It would help me as a chemist a lot to improve my presentation skills Thanks a lot for your respond!
Comment from : @phoenixchemistry4325

Thank you, Justin! I have a client needing to do a return of excess for several years and the investment company is not doing the math correctly!
Comment from : @mike_strong

Not to be an ad, but my WealthSimple accounts provide me all the numbers discussed here They do multiple types of return calculations, too Not hard at all
Comment from : @aj4644

excellent explanation can't wait for part 2!
Comment from : @mrst7008

What's with the thumbnail? Are you calling yourself a dork with the glasses and calculator or the audience that wants to learn stuff?
Comment from : @UnsaltedCashew38

I'm struggling trying to go back and figure out what my portfolio values were before cash flow since my account statements only give end-of-month values Any suggestions?
Comment from : @HerdofFire