Ever wonder how to actually track if your investments are doing well? Like, beyond just checking the price every day? I've been thinking about this a lot lately.



So here's the thing - if you want to find % growth on your investments, there's this metric called CAGR (compound annual growth rate) that's pretty solid. It basically smooths out all the noise and gives you a real picture of what your money's actually doing year over year.

The math is simpler than you'd think. You take your ending value, divide it by your starting value, raise it to the power of 1 divided by the number of years, then subtract 1. That gives you your annual growth percentage. For example, if you threw $10k at something and it turned into $15k over 5 years, you're looking at about 8.45% annual growth. That's how you find your growth rate percentage in plain terms.

Why does this matter? Because when you're trying to figure out if an investment actually makes sense for your portfolio, you need to know how to find % growth in a way that actually means something. Short-term swings can be misleading - CAGR cuts through that.

I use this to compare different assets and see which ones are actually pulling their weight. A high growth percentage might look great, but you also gotta consider the volatility and whether it fits your actual goals. Are you saving for retirement? Building wealth long-term? That changes which investments make sense.

One thing people miss though - just because something has a high growth percentage doesn't mean it's the right move for you. You gotta pair it with stability too. Mix high-growth stuff with steadier plays, and you're not getting destroyed when markets get rough.

Bottom line: learning how to find % growth on your investments takes like five minutes, and it'll completely change how you think about your portfolio. Stop guessing, start calculating.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin