HEAT MAP

The Heat Map chart in the various Portfolio tools 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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HM-walkthrough

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How To Interpret The Chart

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.  Note the color of the square and refer to the guide at the top to find the annualized return for that timeframe.  Alternately, you can hover your mouse over the spreadsheet-based version in the Portfolios section to see the precise return of each individual cell.

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.