CAGR of the PP

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ppnewbie
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CAGR of the PP

Post by ppnewbie » Tue May 21, 2019 1:18 pm

I've seen varied reports regarding the CAGR of the PP. I've seen in the 4.5ish range and also the 9ish range. Can someone point me to the best place to see the returns over any period of time I choose.

Also, has anyone used recipeinvesting.com?
pmward
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Re: CAGR of the PP

Post by pmward » Tue May 21, 2019 2:57 pm

ppnewbie wrote:
Tue May 21, 2019 1:18 pm
I've seen varied reports regarding the CAGR of the PP. I've seen in the 4.5ish range and also the 9ish range. Can someone point me to the best place to see the returns over any period of time I choose.

Also, has anyone used recipeinvesting.com?
The 9% you see quoted is an average nominal return, so it's not including inflation or compounding. It's like how the stock market's average nominal return that you see quoted everywhere is ~10-12% but it's real average compounded return is actually more like 7.5%. This is the reason Dave Ramsey gets so much crap publicly about his 12% yearly return on stocks claim.

The best site to find the info out is portfolio charts. The figure it lists (4.8%) is real after inflation, compounded, and then averaged out for every potential start date post 1970. He also has a heat map listed where you can see the returns of every start year next to each other, as you'll see it's very, very incredibly consistent and tight in it's return range no matter what year it's started in. In my opinion, this consistency regardless of market environment is the PP's greatest strength: https://portfoliocharts.com/portfolio/p ... portfolio/
ppnewbie
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Re: CAGR of the PP

Post by ppnewbie » Tue May 21, 2019 4:18 pm

Does www.peaktotrough.com have real or nominal returns?
pmward
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Re: CAGR of the PP

Post by pmward » Tue May 21, 2019 4:27 pm

I have no idea, but it's forbidden on my work computer for malicious content FYI.
ppnewbie
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Re: CAGR of the PP

Post by ppnewbie » Tue May 21, 2019 10:14 pm

pmward wrote:
Tue May 21, 2019 4:27 pm
I have no idea, but it's forbidden on my work computer for malicious content FYI.
Just ran the url through virustotal.com - Nothing malicious.
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