I appreciate that this is probably simple to others but I am confused by the performance track charts on Guru screens.
For example it says that Growth at a Reasonable price has risen 84% in 3 years on the front page. But when I look at the chart - 3 years ago it had risen to 31% on the chart and to date it has risen to 142% - so 31% to 142% in 3 years - how is that 84%?
Thanks
Its does not work like that. Its 142 - 31 = 111. But your starting figure is 31 its not 0, so as a % proportion its 111/131 = 84%. So yes it has gone up 111 but thats after it has gone up 31%. Hope that explains.
From reading your description & not the original article:
+31% = 100 ==>131
+142% = 100 ==>242
242/131 = 184.7 or + 84.7%
So if we take the liberty of rounding down, that is +84%.
This might be easier to understand if we assume a starting value for the portfolio of £100,000. By the date of your post, 24/5/2016, the growth on the chart is shown as +142%, so the assumed starting value of £100,000 has grown to £242,000 [= £100,000 + (£100,000 x 142%) = £100,000 + £142,000]. Three years ago, on 24/5/2013, the growth on the chart was shown as +31%, so the assumed starting value of £100,000 had grown to £131,000 [= £100,000 + (£100,000 x 31%) = £100,000 + £31,000]. Over the three years from 24/5/2013 to 24/5/2016, the assumed value has grown from £131,000 to £242,000, which is an increase of 84.7%.
