QUOTE(prophetjul @ Apr 12 2013, 07:44 AM)
2% EVERY MONTH..........for how long now?
At this rate your net worth will surpass WB very soon..............
Gold bro, average is affected by high / lows gua.
IMHO - please shoot and advise (criticize with data & perspective)
a. I think more realistic = "median" or the 50th percentile
My "average" since tracking monthly from 2009 is 2.49%pm (mostly due to sorok-ed bonuses' spikes)
BUT my median is 1.82%pm only.
b. I think for realism, one shd use a XX mths moving average or median, thus the previous old-old years' data don't over-skew "current reality".
eg.
For a moving 12-month's moving average: 2.05%pm
For a moving 12-month's moving median: 2.24%pm
c. In addition, one may also want to take a yearly ROE / net worth growth or a moving 12 months' ROE / net worth growth too, to put things in perspective
eg. 24% to 28% pa+/- for the past few months.
Thus, if i look at (a) to © with the examples above, i can figure out that...
1. looks like my "more current" (12 months' moving) net worth growth seems to be snowballing a bit faster than history (2009 onwards)
coz median for (b) & © correlates and is higher than (a)
2. Spikes are evident
looking at the disparity of average vs median for (a.) - thanks to my bosses <kiss kiss mmm nice shoes U have Sirs>
3. There were some SEVERE dips in my past 12-months' growth
coz my 12-months' moving average is lower than my 12-months moving median.
Averages are greatly affected by outliers
Medians arent
Note - my starting pot small & lots of debts mar + started to save like heck, thus look big the %

Still slogging like an ant