Great article @ArrowTrades -- thanks for sharing.

Honestly, the only surprising thing is how easy it is to deceive people.

This is why i love sharesight so much.

Shows you your CAGR, the most truthful measurement, right in your face. You can't hide from it.

I was a peasant using arithmetic mean before sharesight. Now i'm super smart (hahah over-confident) using geometric mean!

Sharesight also use a money-weighted approach, which reflects the impact of both the timing and the size of cash flows on investment performance. It is essentially the internal rate of return (IRR) of an investment, considering when capital was added or removed, thus giving more weight to periods when more money was invested.

This is a much better approach for individuals compared with time weighted returns, which is what fund managers use. In the case of funds, TWR are sensible because they have no control over inflows/outflows and can really only be measured on how the underlying investments are performing.

For the Strawman portfolios, we use money weighted returns also.

You can dig into things more here if interested: https://www.sharesight.com/blog/how-sharesight-calculates-your-investment-performance/