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Calculating portfolio returns can be complex, and is by far the most important thing for you – it’s all that matters. It doesn’t matter that one stock did 40% or that another stock did 26%, while yet another one fell 2%. The point is about how much money you made, period.

The other factor to consider is staggered investments. We almost never buy at the same time. We buy over time, and then sell over time. What, then, is the way to calculate portfolio level returns?

It’s simple once we understand the concepts. Think of yourself as a mutual fund, in a way. You’re the manager. You charge no management fee. The only metric that matters now is – how much have your assets grown (AUM growth) and how much of that growth can be attributed to your investment activities.

The “Exposure” Calculations

Let’s say we started buying in December, with the Capital Mind Portfolio, and went through in Jan with the other picks suggested.


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