Do you know the difference between levered and unlevered returns? This is especially relevant for real estate — the largest asset class globally, since most of the real estate transactions involve leverage.
Do you know your net worth? It’s equal to the sum of all your assets (that you own) minus all your liabilities (that you owe). You can’t improve what you don’t track.
IRR is the key investment return metric used by most mid to long-term professional investors. However, its accurate calculation, including all interim cash flows and historical currency rates, might be challenging for private investors if done manually in a spreadsheet.