A blog about finance and life. And some other stuff too.
jeudi 4 avril 2019
Portfolio review - April 4th 2019
Here's a view on my portfolio:
Number of stocks: 22
Average ROE: 41
Average Forward PE: 19
Average Beta: 0,77
Predictability of the portfolio: 82%
Performance of the portfolio since january 1st: 16%
Performance of the TSX/S&P500 since january 1st: 14%
I like my portfolio. It's probably not perfect, but to me, it's got the right balance between expensive stocks and fairly priced stocks. The right balance between low beta and higher beta stocks. The right balance between high ROE stocks and average ROE stocks. It's like I've tried for many years to cook the best rice krispies squares and now, I've achieved something.
I have a portfolio that performs slightly better than the market when the market goes up and substantially better than the market when it goes down. It's hard to affirm that kind of thing because everything changes constantly (the size of the positions, the nature of a particular stock, the whole market, etc). However, how could a high ROE, an OK forward PE, a Low Beta and highly predictable portfolio could perform worse than the market in the long run? Only time will tell. But for now, short time has told me that it works.
Yesterday, I said to myself that I'd never had so much money at any point of my life. It's not enough to say I'm rich, but I'm very far from where I started 10 years ago.
But money isn't everything. Some things were better when I had less money. Sadly, life never provides everything at a specific moment. There's always some stuff missing. Remember that, you stupid little 20-something years-old investor who can still have a boner.