5Reds : Intelligent Investing & Power of Compounding

My Investing Returns – A look back to see how my Investing has yielded results

The first and foremost disclaimer is that any auditing firm does not audit these numbers. They are simply derived from a spreadsheet that does a calculation for annual returns. So they are all unaudited.

These returns are from my Retirement accounts that I actively manage from 2011.

FY 2011 – 3.65%
FY 2012 – 12.32%
FY 2013 – 30.60%
FY 2014 – 6.32% (Till 31st June 2014)

A $100 invested on January 2011 would have become $161.65.

That is 14.71% Annualized.

A similar $100 invested in S&P would have become $167.71 in those 3.5 years.

My goal is try our best to beat to S&P over a period of 5 years and to try to double our money once in 5 years. We are over 60% and hopefully in the next 1.5 years, we can make the $100 into $200.

But let me re-iterate a very important motto of mine.

My goal first and foremost is to ensure that we don’t lose money.

The prices of stocks in our investments may swing very widely during times of the year. Sometimes it is goes crazy up and sometimes it goes crazy down. But over a long period of time, we will do always better.

On selling Short

Since the market goes crazy all the times, it is very difficult for me to make money when sell anything short. There are a lot of them who sell short and make good money, but my expertise is to stay risk-averse and that keeps me from shorting any stock. As Warren Buffett says, I want to be able to sleep peacefully and shorting stuff doesn’t let anybody sleep.

Time to time, I do make mistakes and once realized, I try to reverse course. There are few of them in my retirement portfolio including Heelys, Paragon Shipping. But my entire portfolio is well protected against these mistakes. Most of these mistakes happen when I try to predict something beyond looking through obvious stuff.

As I always say, most investments are obvious but you should know how to look.

Note: I do have other accounts before 2011 and will include them in a “Results” page soon.

 


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