Performance Measurement and Review

Performance measurement is an important way of determining the success or otherwise of the investment plan. Worksheets using the irr formula facilitate this process.

I record buying and selling information for each share in an Excel worksheet together with the current (calculated) internal rate of return (IRR).

The IRR for the overall portfolio is calculated in a separate worksheet. I also set up a summary worksheet for the portfolio.

I print out an overall performance summary for the portfolio at the end of each financial year for comparison with previous years and aim for the doubling of the portfolio value every four to five years.

The investment plan is not set in stone as I review it every two to three years.

This review includes consideration as to how closely my buying decisions and selling decisions (if any) have conformed to the share investment policy, as indicated by the investment diary that I keep.

Also, being able to accurately determine my portfolio performance provides me with a powerful benefit by enabling me to measure my ongoing success in implementing the plan.

Excel worksheets provide a time-saving way to measure performance of the portfolio by means of internal rate of return calculations.

Worksheets that measure the performance of individual shares and the overall portfolio using the irr formula and that can be adapted for your portfolio may be obtained for free on request by contacting me directly.

Further details relating to these worksheets may be obtained in the tracking results section of this website.

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