Is IRR as Foolproof as We Thought?

By on July 1, 2015

I recently had a conversation with an investor that was relying on their internal rate of return when considering an investment.

While I find the IRR to be a weak tool in general, the most pressing concern during this conversation was the reinvestment rate assumption that is embedded in the internal rate of return calculation.

Related: Introduction to Internal Rate of Return (IRR)


You must be logged in to post a comment Login

Leave a Reply

If you are a current investor, real estate investor, private lender, business owner or a professional who serves these groups, then you will enjoy and benefit from the Reinvestor Newsletter.

Enter Your Name & Email Below. Subscribe today, and get a valuable publication of ours as a free gift.

100% Secure