My Net Worth Growth, Part 1: Introduction
Over the past 25 years, my philosophy and approach relative to investing have gone through four distinct phases, denoted by the letters A-D in the chart below.
This is the first in a series where I'll look at the four phases, and (with hope that readers may benefit from my experiences) provide commentary on what I did right, as well as where I could have done better.
Today's post introduces a chart depicting my net worth growth over the past 12 years, along with some background information.
Stay tuned for the next installment, where I'll answer this question: How does my historical performance match up to the benchmarks?
Note: If you are new to my blog, I hit the million dollar mark about 10 years ago. Read more about me.
EXPLANATION
- My records prior to 1993 were intentionally destroyed. As such, the chart is limited to the last 12 years.
- The value of my portfolio has grown 319.6% over the stated period. (Looked at another way: Over the last 12 years, the value of my portfolio has averaged a compounded annual growth rate of 10.17%.)
Note: These numbers reflect a combination of new contributions and investment return.
- For the past couple of years I have only worked part-time, making approximately $13K / year. My wife retired in 1996. In other words, we now rely on income from the portfolio to cover the majority of our expenses.
- Numbers for the Y axis are intentionally omitted.
[07/22/2005: Post revised to improve clarity.]
Also read: 10 Reasons Why I Like My Dodge & Cox Fund...
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