How To Understand Investment Returns (MWR vs TWR??)

[@manuppatel2760]

This is the first time in years I heard the presentation that clearly shows various methods of calculating investment preformance. Thank you so much!!

[@wealthfrontvideos]

Thanks for watching!

[@cascade1125]

Respect on being able to pyramid your hands for so long

[@wealthfrontvideos]

lol

[@Ronnyboy242]

Best explanation I’ve seen. Thanks 👍🏾

[@wealthfrontvideos]

Glad it was helpful!

[@robertmoore2404]

Thanks for this...I was struggling to understand these...now I have some idea at least 😂

[@wealthfrontvideos]

Thanks!

[@ksn98]

Continue doing this awesome work thanks a lot

[@esushruth]

Thank you for the excellent explanation. I use wealthfront and JP morgan for my investment needs. I am trying to compare the performances of both these portfolios but I have noticed that while Wealthfront gives both the time weighted and money weighted returns, JP morgan appears to only provide money-weighted return or Internal rate of return. Is there a way that i can find out the TWR of my JP morgan portfolio? Thanks

[@MDsCalisthenics]

Helped a lot w Series 65

[@eltraveluis]

Thank you- excellent explanation

[@Inquisitive9]

Thank you for making the video. Some definitions flew over my head as I am novice, but would you agree that if I am looking for how much money I have personally made over the years, then I should be looking at Money Weighted Return of my investments, however, if I was comparing two index funds, I should look at their Time weighted returns. Correct? My bank account shows both, and I can't figure out if I made smart investments and if I am getting the return I targeted.

[@wealthfrontvideos]

Yeah that’s a great way to look at it!

[@Inquisitive9]

@@wealthfrontvideos Thank you for confirming

[@petrehushoratiu]

How about showing a good ol fashioned “winnings “ number (or percentage)? (Total deposits minus total withdrawals) vs the current value of the account. So I can tell how much I “put in “ and how much I “made”. Very simple math, why is not available in Wealthfront????

[@TheReefsFromSMC]

As a number OK, but as a % it does not work. Imagine you withdraw all your initial investment except for $1, and that day you choose to calculate your "winnings" %, it will be equal to your winnings / $1, and the percentage will be huge and not accurately represent your performance.

[@mekaeldiwan]

You made it so easy to understand while also going into detail. Thank u❤

[@wealthfrontvideos]

Thanks!

[@AcademaxPaperHelp]

When i calculate in XL, it shown that IRR=-12.92%

[@wealthfrontvideos]

It's a complicated calc!

[@Mikeint0shVideos]

I also got -12.92% =IRR({-1000,-2000,2500}) What am I doing wrong? Also how didyou calculate the TWR at the end?

[@xianxiong3440]

@@Mikeint0shVideos They did MWR wrong, that's why. -12.92% is the right answer. TWR=[(2/1)*(1.25/2)]^(1/2)-1

[@manp1039]

on wealthfront it doesn't appear i am getting an accurate percentage for either MWR or TWR. I am taking the current total value of the position and the amount deposited and subracting the total dividends earned for all time in fund.. and then caluculating a percentage difference between those two number.. I am getting about 5% gain for all time. but the MWR and TWR that wealthfront displays is 13.4% TWR and 9.9% MWR. both of these are vastly higher than the number i am getting. What am i missing or getting wrong?

[@wealthfrontvideos]

Hi you're calculating simple return, whereas MWR and TWR are very different. I'd encourage you to email our team for more context.

[@ArsinSijo]

From perplexity❤

[@LoriEvans-e5q]

Keshawn Stream

[@PR0SHOTCOAH]

you talk to fucking fast bro