This past year has been an interesting one. We have seen the local market stumble due to regional growth concerns, credit bubbles in major economies, along with Brexit and the well-known oil slump. Due to a long overseas trip, I have not been able to track and blog about my exact performance for the past year.
My portfolio managed to hold up this year (14/6/15 – 7/8/16), giving me an annual return of around 3.85%, with dividends included. In comparison, the STI index has dropped around ~13% (inclusive of dividends) within this period. Taking a look at my 3 year performance, my portfolio grew at an compounded annual average of 3.95%, giving a total return of ~13.3%. The index, however, dropped 1% in these 3 years, ie. basically remaining flat.
Beating the market may make my performance seem satisfactory, but I know it is far from ideal as I made some bad trades in the past year which dragged my performance down. In the end, it is not the 3-year performance that counts, but the long-term results that matter. I will continue to work hard at understanding and mastering myself as I believe that that is the key to success in investing. My aim for the coming year would be to read more widely, make less errors, partly by saying ‘no’ more, and choosing my battles wisely. The strategy going forward would be to invest in an even mixture of growth and yield stocks. This has been an amazing journey, and I look forward to another year of continual learning and gratitude for the chance to do what I love.