It’s that time at the end of the year when one normally has some quiet time to reflect and take stock. I usually take this time to write my yearly post on my investment performance, mostly for myself and for my sister , as a means to force myself to look at the scoreboard at least once a year. I want to prove (to myself at least) if I can keep beating the so called finance “experts” giving investing advice on Twitter and in the MSM, or at least those honest enough to post a long term public record of their own performance.
After last year’s stellar performance of 29.2% , the JSE ALSI Total Return (TR) index this year delivered a modest 4.4% return, while the price only ALSI index returned –0.9% (negative 0.9%). (Yes, don’t discount the importance of dividends, it matters, a lot ! ) Against this background and broad market comparable my sister will hopefully be happy with her 13.2% return for the year, outperforming the ALSI TR Index by 8.8%.
As can be seen in the table below, the last 5 years she enjoyed a Compounded Annual Growth Rate (CAGR) of 18.5% vs the market’s 8.14%. In other words, she outperformed the SA market on average by more than 10% per year the last 5 years.
Her cumulative performance since 2008 as reflected in the graph below, is nearly double that of the market. The last 5 years her portfolio more than doubled in value, with a total return of 133% vs the 48% of the market, or put another way, 2.8 times better than the market. Long may it last !
Investing is one of those endeavors, where if you keep at it, don’t blow up and keep learning every day, you should be getting better every year. My goal and hope is that I’ll live long, and if I’m fortunate to live as long as legendary investors Charlie Munger or Warren Buffett, and still be as witty and smart as them today at their respective ages of 99 and 92, I will have won the lottery of life imo.
My own overall liquid investments net worth increased by c. 15% in 2022 across all strategies and accounts. My new aggressive portfolio which I started just more than 2 years ago, enjoyed a less robust but still satisfying performance this year, up 44% vs the c. 100% of last year, contributing meaningfully to my overall portfolio performance. The cumulative performance for the last 2 years is c. 200% as can be seen from the screenshot below.
Lastly, I wish all my family and friends a happy new year in 2023.
May we all live long, invest well and prosper !