Anonymous wrote:Past performance is no guarantee of future results. Indeed, the very best and very worst historical stocks are probably the riskiest. They are likely to have very high or very low performance in the future, but not necessarily in the same direction.
I'm a Ph.D. finance professor, but this is a basic high school math calculation. Just take the total gross increase, then annualize by raising to the power 1/years, and subtract 1. For example, a stock that doubled in 5 years got a compound return of 2^(1/5) -1 = 14.87%. A stock that multiplied fivefold in 10 years got a compound return of 5^(1/10) - 1 = 17.46%.
Thanks! I'm aware of this formula and use it in Excel for rough calculations. What I'm looking for is something more accurate and more comprehensive..
For example, I have stocks I originally purchased in the late 90s, added chunks along the way and have DRIP turned on. I'd like to be able to see ROR right now, ROR for each year, ROR trend (velocity) over time, etc so i can make decisions on when to keep or dump them. Gets too cumbersome in excel.
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