HEAT MAP

The Heat Map chart displays compound annual growth rates not over a single timeframe, but over all timeframes.  It’s a great way to visually evaluate how a portfolio performs throughout a variety of economic conditions.  Use this to compare how a hot or cold streak stacks up against history, or to see beyond recent returns and rosy averages that may hide a turbulent past.


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Heat Map


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Overview


The Heat Map shows the inflation-adjusted CAGR for every investing timeframe based on when you invested and how long you stayed in the market.  Look for the start year in the left column and count the appropriate number of squares to the right for the years held.  The number in the cell represents the Real CAGR for that timeframe, and the color follows the guide at the top.

The column at the far right is customizable to allow you to study the results over a specific number of years held. Note that you can also use this feature to study investing timeframes longer than 15 years which normally don’t fit on the chart.

Depending on the portfolio, you may also see cells with no black outline.  These indicate start years with incomplete data where the returns are only estimated based on the best numbers I have available.

Articles


Insights that reference the Heat Map