How we did in 2017:
Here’s how the markets did:
The S&P total return was up 21.8%.
For those who prefer alternates to stocks:
The Vanguard Total Bond Market ETF was up all of 3.5%
The Vanguard REIT ETF was up 4.9%
The Powershares Commodity Index was up 4.9%
Was this a wildly speculative market with the smallest caps outperforming? Actually it was the opposite, a conservative, safety-seeking market with the largest caps doing best:
The S&P (Large Cap) returned 21.8%
The V. Mid-Cap ETF returned 19.3%
The V. Small Cap ETF was up 16.3%
The iShares Micro-Cap was up 12.8%
Many on our board were up 50% to 90% during the same year. The message? A concentrated portfolio and intelligent stock picking pays off. By intelligent stock picking I mean actually learning about the company, and using a number of the criteria described in the Knowledgebase, like:
Rapid growing revenue
A long runway
Also admitting mistakes, or changes in circumstances, and exiting when appropriate is crucial (you avoid holding on forever, and thus you can re-deploy your funds).
Avoiding price anchoring is very important. The stock is where it is now. It doesn’t know or care where you bought it, or should have bought it.
Hope this helps
For Knowledgebase for this board,
please go to Post #17774, 17775 and 17776.
We had to post it in three parts this time.
A link to the Knowledgebase is also at the top of the Announcements column
that is on the right side of every page on this board