The compound annual growth rate (CAGR) measures the annual rate of growth of an investment (stocks, funds, company revenue, net worth) over a period of time from its beginning balance to its ending balance, smoothening out the ups and downs in between. 

The IRR also measures the annual growth rate of an investment but it's more flexible. In contrast to CAGR, more complicated investments, or those that have multiple cash inflows and outflows, are best evaluated using Internal Rate of Return (IRR). 

More reading on CAGR and IRR

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