jeudi 16 mai 2019

Discipline *** EDIT ****

Here's my annual post about the progression of my portfolio over time. The performance of a portfolio may bring joy to a heart, but discipline with savings could amplify the joy someone's feel.

This year again, I believe that my discipline did a huge difference on my portfolio. The following numbers show how my portfolio has grown from may 16th 2009 until may 16th 2019 (every may 16th of every year).

2009: year 0
2010: 75%
2011: 41%
2012: 38%
2013: 31%
2014: 50%
2015: 54%
2016: -8%
2017: 22%
2018: 19%
2019: 32%

Compound annual rate since 2009: 35%

Given the fact that my portfolio is currently almost 20 times bigger than it was 10 years ago, it's incredible that I've managed to grow it's value by 30% over the last year. An important part of the growth is due to savings. So, please, do not tell me that my numbers are not performance numbers because I know that.  It's simply a photograph of my portfolio from year to year, without taking care of what's the explanation behind the growth. 

Here's a substantial explanation: My 9 years old car. It's my pride in a certain way. That car is reliable, doesn't cost me anything except some gas and insurances and it helps to me save about 500$ every month (if we had a second car or a newer car, that's what the cost would look like). The money I save there can be allocated to travel or to investment. 

Goal for the next year: 15% growth.


**** EDIT ON MAY 27TH ****

Actually, my performance from 2018 to 2019 has been 32% instead of 30%. 

5 commentaires:

  1. An outstanding long term record and a good example of what the DIY investor at home can achieve on his own if he is motivated enough...

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  2. Awesome performance. To track my performance, I sum the accessed tax value of my house, my total stock & cash holdings minus what I owe including our mortgage and track monthly and yearly performance since 2015. I don't include my wife's and I's government pension, market value of our house or material assets. I include the mortgage because I can juice my stock holdings by paying less on the mortgage. I want to pay off the house in 5-10 years and including it gives me some motivation to pay it off.

    We live simple but don't go without. In the last 2 years I've spent more as opposed to saving. I have a better relationship with our money. With our pensions we probably don't need as much savings as we have (and will have) when we retire. We're enjoying more of it now, fixing up the house, buying coffee in the morning, etc. and focusing on a balanced lifestyle than maximizing returns.

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  3. I track Dec 31.
    My performance is 2015 (24.93%), 2016 (5.13%), 2017 (33.51%), 2018 (8.21%), average 17.94%. The 2016 had the Donville Healthcare fiasco and in 2018 was the sharp pullback in Nov-Dec (I didn't sell and just rode it). In 2017 I made Shopify my top holding (and continue to do so, never sold).
    I probably contribute roughly 8% a year to my performance through mortgage payments and contributions. Up 23% since January 2019. Large bills (xmas, house insurance, car insurance, house taxes, house renos, travel, etc) always happen in the first 8 months with Sept - Dec being when we save the most. Works out alright because Sept & October typically are my worst months for stocks.

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  4. This is an interesting topic. I actually track my family's net worth and financial metrics much like I track the securities I own and analyse for my 'job.' I can tell you my debt/equity ratio, ROE, ROA etc. going back to 2007. Our average ROE since 2007 has been 18% which features two down years: 2008 and 2018. 2008 was due to financial asset deflation and more recently 2018 was due to real estate asset deflation. I don't use assessed values because they are lagging indicators and generally not that accurate. My goal is 20% but I suspect that as the numbers get larger, I should dial that back to 15% so as not to be disappointed but more importantly so as not to take on undue amounts of risk.

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  5. I get the same pervertic feeling with my 2009 hyundai sonata. Bought with cash in Jan 2011 and only cost incurred for last 9 years or so is about $2K for regular maintenance. That's like $220 per year... Still drives like a brand new and that really makes me proud.

    All the money saved is going to companies that compound their capital by 15-20% per year...

    Why wouldn't I be proud of myself driving 10 years old car?

    Great job on explosive growth last many years buddy.

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