Investing glossary
Every term on the site explained in plain words: IRR, CAGR, multiple, exchange rate effect and more.
- Annual IRR
- Internal Rate of Return: the average yearly return considering when each peso went in. Useful to compare it with what a bank would pay.
- At close
- The snapshot of the portfolio on the day its year of purchases ended.
- Average cost
- What each share cost on average, considering every purchase at different prices.
- Average purchase
- Invested divided by the registered weeks: how much was bought on average each week.
- CAGR
- Compound annual growth rate: how much it would have grown each year, on average, to reach today's value.
- CAGR since close (on invested)
- Growth per year since the close, compared with the money invested.
- CAGR since close (on the value at close)
- How much the portfolio has grown per year since it stopped receiving purchases, compared with its value that day.
- Cash
- Money from sales still inside the portfolio waiting for a new purchase.
- Equally weighted positions
- How many equally weighted companies the portfolio is equivalent to. Higher = more diversified.
- FX effect
- The part of the gain that comes only from the dollar going up or down against the peso.
- Gain/Loss
- Value today minus invested: a gain when positive, a loss when negative. Until you sell, it is «on paper» and can change.
- Implied exchange rate
- The exchange rate that results from dividing what you paid in pesos by the dollar price of the stock that day.
- Invested
- The new money put into the portfolio. Money reinvested from sales does not count.
- Leveraged ETF
- A fund that aims to move 2 or 3 times what another stock or index moves in a day. It rises more but also falls more: higher risk.
- Multiple
- How many times what you invested is worth today: 2× means each peso invested is worth two.
- Projection
- A calculation of how much something would be worth if it grew at a fixed rate every year. It helps to understand compound interest, not to predict the future.
- Return
- The gain as a percentage of what was invested: +50% means every $100 invested is now $150.
- Stocks effect
- The part of the gain that comes from the stock prices going up or down in dollars.
- Value today
- What the portfolio would be worth selling everything at the latest close, in pesos, plus cash.
- Weight
- What share of the portfolio each company represents.