mercredi 16 mai 2018

Discipline

It's my birthday. I'm 39 years old.

I've never liked the fact that time flies. But, owning stocks changes your perception of time. Time brings new results, which brings more money. I know, there's not only money in life, but it helps. 

Since the beginning of 2018, the performance of my portfolio has been deceiving (about -2%). However, once again, my savings contributed well to the adjusted performance of the portfolio.

Since may of 2009, I keep track of the worth of my portfolio for each one of my birthdays. Here's how it looks (2009 being year 0).

May 2010: 75%
May 2011: 41%
May 2012: 38%
May 2013: 31%
May 2014: 50%
May 2015: 54%
May 2016: -8%
May 2017: 22%
May 2018: 19%

Adjusted average annual return: 36%

I believe that I've reached a point where it's gonna be very hard to achieve a performance over 20% given the size of the portfolio and given the fact that my savings don't have the same relative weight that they did in the past.

First and foremost, what's behind these numbers is a lot of discipline and control of costs. Some years, I’ve managed to save about 50% of my income. You have to be very very gifted to get a 36% annual performance without considerable savings.



16 commentaires:

  1. Happy Birthday!

    How do you calculate your portfolio? Do you include your mortgage or other assets? Do you manage your own pension?

    I used to track only my stock holdings but expanded it about 3 years ago in my spreadsheets to include equity in my house, debts, cash, etc. to get a better picture of our financial standing. My wife and I have government pensions which I don't track or include as I have no control over them. This spreadsheet is great to keep things in perspective (especially short term movements in the market!) and to ensure we're moving in the right direction. It's easy to loose sight of a 40% YTD stock gain on days when it drops 5%.

    How in the heck do you save so much money? We're constantly renovating our house, travelling, child expenses, etc and on $140,000 gross only manage to save $20,000/year. Daycare is killing me at $900/month!

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    Réponses
    1. My portfolio is only my stocks and my money ready to be invested.

      How do I manage to save money? We own only one car. We don’t renovate the house except a few things here and there. My house is only 13 years old.

      I travel only after having invested money. But I travel more than most people...

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  2. Иметь превосходное рождения!

    Χρόνια πολλά!

    生日快乐

    I just wanted to say HAPPY BIRTHDAY in Russian, Greek and Chinese.

    Joyeux Anniversaire! Le succès n'est pas loin de toi.


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  3. Happy birthday master penetrator, love your work!

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  4. D'une certaine manière, nos styles se ressemblent. Ce texte est une réflexion de mes pensées.

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    Réponses
    1. Ce que je réalise avec le temps c’est qu’il y a presque toujours une très importante part d’effort derrière tout succès ou réussite.

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  5. Patrick Industries announces increased share repurchase authorization

    May 18, 2018 8:44

    The Board of Directors of Patrick Industries (NASDAQ:PATK) approved an increase in the amount of the Company's common stock that may be acquired over the next 24 months under the Company's current stock repurchase program to $50M, including the amount remaining under the previous authorization.

    "The increase in our stock repurchase authorization reflects the confidence that our Board of Directors and management team have in Patrick's outlook and market conditions, and is consistent with our capital allocation strategy and our commitment to driving shareholder value," said Todd M. Cleveland, Chief Executive Officer.

    *Merry Christmas, Penetrator. You will not be getting screwed with share dilution. PATK is buying back even more shares.

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  6. Impressive performance. What has been the mix of your investment portfolio over the years in terms of micro to large caps?

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  7. Impressive performance. What has been the mix of your investment portfolio over the years in terms of micro to large caps?

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    Réponses
    1. I don’t know the exact numbers but there’s less and less micro caps and more and more medium caps.

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  8. Why dont you start a an investment club ? Would be great to all chip in and enjoy the ride...

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  9. First of all, happy belated birthday and congratulations doing such a nice job with investing in the stock market. It appears that you are including the net increase in cash (savings) as a component of your portfolio return. If this is the case then your portfolio performance numbers are not accurate. Your portfolio performance should be combination of the interest income on cash + unrealized capital gains/losses. In other words, you want to adjust your calculations for deposits and withdrawal made during the year. You can find out more through this link: http://www.moneysense.ca/invest/calculating-your-portfolios-rate-of-return/

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  10. Happy belated birthday Mr Penetrator...and congratulations on a job well done...

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