Wednesday, 1 May 2019

Investing results in the past 12 months, - 43% swing in time weighted returns and back to square 1



Decided to look back on the past 12 months of investing on a public holiday today.

Before actually loading the chart on stockscafe i probably had a similar sight in mind as well.

At highest point which is in June, time weighted returns hit 21.82%
At lowest point which is in January, time weighted returns hit -22.32%

That's a rough swing of 43% in a short span of just 6-7 months. To give a rough gauge the amount swung is probably around 6 semesters of university school fees.

How did i cope with it?
To be frank i did not really cope very well initially but i just have to continue my daily research to make sure my estimations are at least somewhat close.
Then its leading life as normal, going for more concerts definitely cheered me up as well. I developed the habit of not even bothering to open the app to look at daily prices.
At some point where the portfolio just tanks 4 digit sgd a day i'm already kinda frozen and emotionless, as though knowing its gonna happen but i'm just like nope i'm not gonna sell anymore no way man.
Due to the fact i was pretty heavy in equities to begin with and had a low income, it was pretty difficult for me to add.

Then come the turn of the year where we see broad rally in Hong Kong and China markets. This made the returns head back to where they were just 1 year ago. Literally back to square 1. If anything i felt that i did very bad in the past year. Could have improved my analysis process better. But then again if my 'analysis was really good i won't be in the current position now :( '

What are the implications the past year had on me?

Well at the current moment there are certain stocks i really want to add but i took a look at the chart above and i'm like 'here we go again?' Guess that part of fear does run a little in me still.

I foresee myself adding still in May, probably a change in strategy from what i did last year i guess. After-all, the stocks i held in recent few years all had different strategies involved and resulted in varying results.

After-thoughts

-Could have done better really given the amount of time and space i had.
-Was really lucky, could have actually lost much more money.
-Did a couple of nonsense panic sells when in actual there really isn't a need for it. Its just the i want to keep more cash on hand fear at play.
-The sharp rally year to date makes me wonder why i did not really add even more? But i guess that's human emotions at work. Might have to work on that better.

All in all i would say the results were a blessing while the process was a good learning experience and taught me that i really need to be more precise and less complacent. Not just because the returns hit a peak in June and hence i could be more 'slack' in researching. I am pretty angry with myself looking back at that.

Hopefully the next 12 months i would be able to do better. So that i would continue to have funds to go watch concerts haha.







2 comments:

  1. There are times when my own portfolio is steeped in red ink and I didn't want to take a look too. 12 months a bit short of a time horizon to judge your capability. Don't beat yourself up over it. If you have a plan and you believe it is good for you, then stick with it and ignore the rest of market noise. All the best!

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