Interesting year so far, and my portfolio was not spare. My portfolio was sharply down almost 30% at one point but, like many others, the stock market recovered fairly quickly and I am almost breakeven for the year now.
The outperformance is tracked in the bottom graph. Although my portfolio underperformed the Index for most of the downturn in the March drop, my recovery was much stronger that the outperformance is back on track. Basically, I am still holding to the same stocks, the only thing I did was to divest one company and moved the freed up cash into the remaining stocks. Aim to keep my stock turnover in the low 10-20% range.
From June to Nov, the trend on the right of the vertical red-line shows the continuation of my ortfolio outperformance over the STI index. Most of the gain this year is attributed to Reits but to me, it is the total portfolio performance that counts. This year can be REITs, another year was Banks and another year was semi-cond, etc, it is the total returns and not just looking at winners and ignoring losers.
Some may argue that I am comparing to a weak opponent. Sure, but the fact is that my portfolio is made up of all SG stocks so naturally the performance evaulation benchmark should be compatible. But how have I fared against a stronger opponent? From 2016-2019, STI returns 6.3% annualized and S&P 500 returns 12.4%, which I agreed is pretty significant. As comparison, my annualized returns for the 4 years is 18.2%. So I think I have done quite ok.
While we are on the topic of buy-and-hold, I think this article would be interesting for proponents of long term investors of high quality companies (by extension, including their management).
Update one year later after this post.
Interesting year so far, and my portfolio was not spare. My portfolio was sharply down almost 30% at one point but, like many others, the stock market recovered fairly quickly and I am almost breakeven for the year now.
The outperformance is tracked in the bottom graph. Although my portfolio underperformed the Index for most of the downturn in the March drop, my recovery was much stronger that the outperformance is back on track. Basically, I am still holding to the same stocks, the only thing I did was to divest one company and moved the freed up cash into the remaining stocks. Aim to keep my stock turnover in the low 10-20% range.
Reply to @vincentwong10 : Thanks! Nice recovery for you too!
Update 5 months after I posted this.
From June to Nov, the trend on the right of the vertical red-line shows the continuation of my ortfolio outperformance over the STI index. Most of the gain this year is attributed to Reits but to me, it is the total portfolio performance that counts. This year can be REITs, another year was Banks and another year was semi-cond, etc, it is the total returns and not just looking at winners and ignoring losers.
Some may argue that I am comparing to a weak opponent. Sure, but the fact is that my portfolio is made up of all SG stocks so naturally the performance evaulation benchmark should be compatible. But how have I fared against a stronger opponent? From 2016-2019, STI returns 6.3% annualized and S&P 500 returns 12.4%, which I agreed is pretty significant. As comparison, my annualized returns for the 4 years is 18.2%. So I think I have done quite ok.
Reply to @kc2024 : Thanks bro!
While we are on the topic of buy-and-hold, I think this article would be interesting for proponents of long term investors of high quality companies (by extension, including their management).
https://www.safalniveshak.com/buy-and-hold...