Hi. Both are mechanical stock only strategies. XIRR is the eXtended Internal Rate of Return per 12 months over the whole period in USD as calculated by the XIRR function in google calc. I use the S&P500, Dow, Nasdaq-100 and Russell2000 for the same period as Benchmark.
Some things to consider:
- Indices are without dividends and of course the dividends strategy is about cashflow and therefor dividends.
- At first I was surprised by the bad performance of the Russell2000. Since 2012 the XIRR was only 8.51%, last 5 years 5.42%.
- XIRR is calculated like your bank account interest in reverse, considering all the amounts you put in or take out with the respective date.
- There are heaps of strategies that would have beaten mine, not only bitcoin. After the fact.
- 5 and 11 years are not very much, but it seems I am on the right way.
I try to present the performance numbers for each year and the XIRR over the whole period (sorry, my first table here):
| Year | S&P500 | Dow | Nasdaq | Russell2000 | dividend strategy | growth-momentum strategy |
|---|---|---|---|---|---|---|
| 2012 | 13.35% | 7.23% | 17.39% | 13.2% | ||
| 2013 | 29.38% | 26.47% | 31.1% | 36.63% | ||
| 2014 | 11.45% | 7.55% | 19.1% | 4.31% | 8.23% | |
| 2015 | -0.73% | -2.23% | 7.87% | -6.28% | -5.7% | |
| 2016 | 9.59% | 13.42% | 5.89% | 19.66% | 17.29% | |
| 2017 | 19.42% | 25.08% | 31.52% | 13.19% | 11.46% | |
| 2018 | -6.24% | -5.63% | -1.04% | -12.24% | -12.3% | |
| 2019 | 28.88% | 22.34% | 37.96% | 23.74% | 22.23% | |
| 2020 | 16.26% | 7.25% | 47.58% | 18.41% | 3.32% | -2.02% |
| 2021 | 26.89% | 18.73% | 26.6% | 13.67% | 36.14% | 56.4% |
| 2022 | -19.44% | -8.78% | -32.97% | -21.56% | 6.95% | 7.73% |
| 2023 | 24.23% | 13.7% | 53.81% | 15.11% | 3.33% | 64.4% |
| 2024 | 23.31% | 12.88% | 24.88% | 10.02% | 17.2% | 25.64% |
| Total XIRR per 01/13/2025 | 12.46% | 9.96% | 18.26% | 8.52% | 10.1% | 27.34% |
Performance is a bitch. Many people would have stopped the growth-momentum strategy after one year, losing 2% while the Nasdaq made 47%. I did dry-tests for many years and knew this could happen…