Other than inputing individual trades into a spread sheet to figure out my rate of return, I didn't know how to see if I was doing better than passive investing and by how much. My brokerage shows you cumulative time weighted returns, which would give me an accurate answer only if I didn't make any additions or withdrawls to the account. So I don't have a good estimate for returns in my taxable account. BUT I just realized that my ROTH IRA hasn't had any additions in a while (I converted some of my traditional IRA to a Roth IRA during the temporary tax cut year, but haven't added since because taxes went back up). So when I used the tool, it's comforting to see that all my efforts aren't producing a result that is worse than passive investing.
I have no desire to ever manage money for anyone, and honestly if someone was looking over my shoulder and questioning some of the dumpster dive stocks, I might be tempted to hug the index and underperform just like the pros. But I do think individual investors can play a different game than the pros and part of the positive returns are due to this website. The signal to noise ratio is very good here and reading up on a thread here is part of my process (along with 10-ks, investor presentation, trade mags, interviews with the CEO etc). I definitely make fewer errors by being able to bounce ideas off of smart people here and get their feedback. And talking with people with compounder mindsets is helping me look for more of them and avoid quick pops in commodity shitcos.
So thanks to everyone on here for your help. I appreciate the culture of sharing and generosity on here.
From July 1, 2020 to July 6, 2023
Showing prior-day close of business data Select to view help about how often this performance data is calculated
Cumulative time weighted return
93.99%
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S&P 500 TR View selected benchmark index help
49.23%
Select a benchmark indexto compare with your historical performance from the dropdown menu in the layer