Ya know, people STILL use that Dietz method to calculate their returns.

>But it's January and they're interested in ...
That's not the point. The point is that Dietz can be quite inaccurate and, in fact, sometimes can NOT even generate a number!

>Huh?
Once upon a time we gave an example in a Dietz tutorial, but we'll repeat it now:

>In what tutorial? Can't remember, but you can search here

Anyway, here's the example:

Time Amount Invested 4 years ago $10,000 3 years ago -$10,000 2 years ago -$10,000 1 year ago $10,000 Now $1,000

>Negative investments mean a withdrawal, eh?
Yes. You start with $10K four years ago, then a couple of $10K withdrawals (a year apart) then a $10K investment (a year ago) and you have, today, $1K.

Anyway, if you stick this data into one of those Dietz calculators, it'll generate an annual return of 0/0.

>That's not a number ... is it?
No, and Dietz calculators get pretty upset!

>Where can I find one?

Check here.
Start with $10K in 1/1/2000, withdraw $10K in 1/1/2001 and 1/1/2002, add $10K in 1/1/2003 and today, 1/1/2004, your portfolio is worth $1K.
See what the calculator says

>So is there an answer? I mean, other than 0/0 and ...? Yes. An XIRR calculator says it's (about) 19%. >Where can I find one? Can't remember, but you can search here