What a tough end of year. But what's beautiful in the investment world is that, when it's tough in the present, it's probably gonna be beautiful in the future. The problem is to determine if it's close or far future.
So, here's how it looks for my portfolio:
Performance of the portfolio so far in 2018: 3%
Performance of the S&P/TSX so far in 2018: -10%
Relative performance of the portfolio: +13%
Top 5 positions: MTY Food Group, Alimentation Couche-Tard, Constellation Software, Alphabet, Ross Stores
Numbers for my portfolio:
Average ROE: 42
Average Forward PE: 20
Average Beta: 0,7
Estimated EPS growth next year: 14%
Even if it's not a year to become millionaire, I'm satisfied with my performance. Actually, I think I'll always be happy when I'll manage to beat the market by more than 10%.
To me, the current level of valuations is interesting. I don't see why the market couldn't offer us a performance of 10% for the coming years. OK, there's probably gonna be a third world war soon with all the crazy leaders that we have on earth. But, us canadians will survive. Because nobody thinks of bombing us. It would be like bombing Finland. Who the fuck thinks that bombing Finland would send a message?
Anyway, you've probably seen charts about the stock market after the missiles crisis in the beginning of the 60's or the Vietnam War in the 70's or any other war or negative diplomatic event. The market always recovers. I don't think we're going through a worse crisis now than those from the 20th century.
And after 10 years of investing, I've never been through such a market crash and wanting so badly to invest every penny I hold. Fuck all those bad analysts who say to hold cash right now.
They're fucking late.