Keeping Score

When I go to watch a baseball game, I like to keep score. Balls and strike, where the ball gets hit etc,

Being a numbers guy, I am slightly anal about tracking performance. I will be tracking my performance in two distinct ways:

(1) I will be tracking the Annualized Internal Rate of Return (IRR for the geeks) on the cash flow generated by my portfolio. This is a highly complex calculation that I could not perform easily sans my Dell. It is analogous to a return in a year on any investment, except it accounts for the fact that I don’t buy all my stocks on the same day (nor will I sell them) and it adjusts for dividends and such as well.

(2) I am also running a completely parallel portfolio in which every time I buy a MFI stock, I also invest the same funds into IWV (an ETF of Russell 3000). This is the benchmark I need to trounce.

(3) While I will keep my investment amounts private, I will speak of them in this blog as if I always invested $10,000 per stock (in year 1… obviously if they double every two years I’ll be at $20,000 then).

Now you (the “bloggee?”) are up-to-date. I will try and post my trial, tribulations and hopefully successes on this page constantly wondering, “is anybody reading this?” Even if no one reads it, I suppose it is therapeutic to spill my guts from time-to-time.