Portfolio up ~40% for 2010 : Good or mediocre ?

DavidHayton

tony2toes wrote: »

hello , I am an amateur-intermediate (somewhere in the middle !) investor who proactively manages my own portfolio of US equities, and options(calls,puts) etc. Investment theme: growth and monthly-income, with a strong bias towards growth (some speculative and medium risk tolerance).

40% growth is an excellent return on a US-equity based portfolio this year. Well done! The S&P was up by about 12% (though you will have been helped by the dip in the spring if you were investing new money during the year. David

JoeCrystal

To be fair, it can be hard to figure out the return over 2010, especially if you kept on investing over the year. For example, at the start of 2010, my Portfolio value was £3,144.00. I invested £2,545.08 over the year. And now, by the end of the year, it is currently £6,487.30.

Since May 2009, the Annualized Return (based on XIRR) is 10.74% while the Simple Return (based on current value and cost) is 9.53%. Since I tend to spend most of the year in red. I am not complaining!

Cheers

Joe

Credit_Jake

Is there a thread on how to get started lol?

lisyloo

To be fair, it can be hard to figure out the return over 2010, especially if you kept on investing over the year.

It's very easy in an excel spreadsheet.

Column A - contributions
Column B - Days (since last entry)
Column C - Balance - calculated as

=A7+C6+(C6*$B$3*B7/365)

Which in words means

Balance = latest contribution
PLUS previous balance
PLUS previous balance * return * number of days/365

Once you have it right, you can just copy the formula to new rows.

Asheron

Well for me 2010 was a year of Silver investment so I did very well, 2011 is going to be Oil and Rice for me

DavidHayton

Credit_Jake wrote: »

Is there a thread on how to get started lol?

Hi Jake,
If you're saving for a house deposit, it is probably best to stick to cash. Equity markets can and do drop by 20%, taking 20% of your deposit in the process.
However, if you do want to know more, have a look at HL: http://www.h-l.co.uk/

David

bobbyj_2

and before the doubters arrive questioning anybody's honesty who returns over 7% investing in the stockmarket take a look at this years stockchallenge winner, thus like i said 40% is nowt to write home about and indeed pretty poor.

http://infoex.hemscott.net/MESSAGES/1564796.HTM

lisyloo

I am not questioning anyone's honesty, but I think you need to distinguish between sophisticated and unsophisticated investors.

This may well be poor for a sophisticated investor but it's fabulous in terms of someone unsophisticated (of which I'm one).

This disctinction needs to be made because I think it's important not to give unsophisticated investors the wrong impression.

If this was easy or common place, then everyone would be doing it.
It's not easy, common or without risk.

I do believe what people have said, just don't want others to get the wrong impression about it.
I only got 10% but I'm an unsophisticated and also disinterested investor and leave it to someone else and I'm happy with that as it acheives my goals of beating my cash.

lvader

bobbyj wrote: »

and before the doubters arrive questioning anybody's honesty who returns over 7% investing in the stockmarket take a look at this years stockchallenge winner, thus like i said 40% is nowt to write home about and indeed pretty poor.

http://infoex.hemscott.net/MESSAGES/1564796.HTM

There is a big difference between playing the stockmarket to see how big gains you can make and investing a decade or decades of pension fund. It's one thing to have a punt and turn £1000 to £2000 or even £4000, it's entirely different to turning your life savings from say £100'000 to £200'000 or more.

bobbyj_2

what?????

Well i've punted numerous multibaggers this year like many and believe you me they weren't done with small cash. Granted one has to start somewhere but don't think everyone only plays with a couple of grand here and there. Three quarters of my 'life savings' are my trading pot btw - the best place for it, some days 100% cash some days 100% invested. You won't make big money thinking small that I can tell you, you won't make big money giving it someone to invest for you neither. Like I say buy the book as he's done what myself and many more have done and buy running our own investments.