As I have subtly indicated in the title, I think I have done well in my investment journey so far. After crunching the numbers, the result is actually much better than what I had initially assumed. Based on my “active portfolio”, I have achieved a CAGR of close to 19% from November 2010 to Dec 2013.
But hey, I also understand that “well” is pretty subjective. So before some investment gurus with >30% annual returns over several decades come bearing down on me (mocking at both the returns and the short time period of my records), let me clarify that I am just comparing with my “other portfolio”, my Philip Capital Sharebuilder plan.
That passive and automatic portfolio ($500 channelled towards STI ETF and $100 towards DBS) yielded a CAGR of less than 4% over the same period. That’s a 15% difference! Moreover, this is likely a fair comparison as it was lucky that I started acting on both Warren Buffett’s & John Bogle’s investment philosophies at the same time in Nov 2010. (A comparison like that would also eliminate most of the limitations of the XIRR function)
But even though the numbers do look pretty good the journey wasn’t exactly smooth sailing. I could still recall Mrs 15HWW’s constant nagging that I should have bought earlier/waited for a while more when the price became lower before buying those shares when the portfolio was in a sea of red. =p (like duh) The highlights of the four years are detailed below:
2010 (do refer to here for a more detailed breakdown)
I didn’t start off on a wonderful note as you can see from the CAGR. But it’s probably not really representative since it was only for 2 months and the absolute loss was only a few hundred dollars at the end of the year. I had invested in companies like Boustead, MTQ and Kingsmen during this short period
2011 (do refer to here for a more detailed breakdown)
With the Arab Spring, stocks like Boustead and MTQ got battered badly. But it presented an opportunity as I bought more stocks of Boustead. This was also the year when I started receiving dividends and I accumulated $2,200. Bought into Challenger, Vicom & SIA Engg during 2011 too.
2012 (do refer to here for a more detailed breakdown)
2012 was the year when the portfolio started turning green instead of languishing in the red. However, I also made “mistakes” as I sold off Saizen Reit and Silverlake and used the proceeds to buy into Wilmar. I am pretty sure if I had not done that, my overall CAGR would have gone up by at least another couple of % points. Nothing much on the buying front as we were saving up for our wedding and renovation.
2013 (do refer to here for a more detailed breakdown)
Best year thus far as some stocks like Boustead & Challenger went into overdrive and boosted overall returns. Injected $43,000 into this portfolio as I adopted a new goal of early semi-retirement and also started this blog. The primary purpose of most of the purchases (notably the Reits) were to increase the overall yield and passive income of the portfolio.
After accounting for the divestments and dividends, the gains total about $38,000 from a capital of $117,000. Ignoring the time value of purchases, that’s about 33% in total returns. It’s also reassuring to know that even if the “market” drops by >25% now, this stocks portfolio would still be in the black. =p
Regarding the high CAGR so far, I fully understand that my investment journey has been short so far and I do not expect the exceptional returns to continue indefinitely. More likely than not (especially with my recent purchases that are more yield-oriented), the returns are likely to revert to the mean in the next few years.
Nonetheless, I am still hoping Lady Luck continues to shine on me. =p
Since it took me some time to dig out the full details of the purchases, sales and dividends of my active portfolio, I have decided to create a page to document them if I ever need them for reference again.