Performance
How am I performing relative to my alternatives?
Am I winning more than the S&P 500?
Am I losing less than the S&P 500?
Am I keeping up with inflation? (more and more relevant these days)
Could I reasonably expect to make more money with less effort in a real estate holding?
Could I make more money invested in safe Government bonds?
Should I invest in a startup or small business?
Should I become a loan shark?
Would I be better off stuffing my cash in a mattress?
Another area to consider would be: how am I performing relative to the amount of risk I’m taking? How do my returns compare to my max drawdowns?
If I’m up +17% and my max drawdown was -40%, perhaps I’d be much happier if I was only up +4% but my max drawdown was only -6%
These are just a handful of additional ways to measure performance.
As you can see, there are plenty of ways to measure performance beyond just measuring dollars and cents. Find which measures resonate most with you and start tracking it!