Annual Update

I have been tracking the detailed performance of my portfolio for 44 months now. This gives me almost four full years of data to analyze. Here is the performance of my portfolio.  I have decided not to wait until the 48 months for complete this year’s annual update as I suspect its time to make some changes.

I Mo 3 Mo 1 Year 2 Years 3 Years 44 Mo
Portfolio

-0.82%

1.80%

8.52%

15.94%

18.54%

10.39%

TI Index

0.62%

2.37%

9.45%

15.43%

20.06%

18.01%

DOW

-3.69%

-1.30%

9.34%

23.84%

35.87%

36.56%

TSX

0.28%

0.41%

7.15%

15.67%

17.84%

6.31%

During the past year my portfolio has gained 8.52%. This is better than the TSX, which gained 7.15%.  If we assume however that the average TSX component has a yield of 2.5% then the overall returns for the TSX are over 9.5%.  The DOW gained 9.34% (perhaps 11% with dividends) and the TI Index gained 7.15% (perhaps 9% with dividends).  My portfolio has under performed all of these comparators.

Looking at the 44 month timeframe the portfolio has gained 10.39%.  The TSX has gained 6.61% in the same period (perhaps 15% with 44 months of dividends).  The TI Index and the DOW have done even better.

We are therefore forced to conclude that my investments selections are worse than these comparators at every timeframe.

Accordingly I will move my portfolio from individual stocks to indexes.

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