This is really not what our board was set up to discuss, but people are posting such nonsense about what must be happening with my portfolio that I feel obligated to correct them.
Let’s forget about the quite profitable years of 2017, 2018, and 2019. Let’s start with that extraordinary year, 2020. In 2020 alone my portfolio was up 233.3%. That means it was at 333.3% of where I started the year. A triple, and a third of the way to a quadruple.
Then last year, 2021. On Nov 9th, I hit my high, up 93.1%, or 193.1% of that incredible 333.3% of what I started 2020 with. Piled on top of it, so to speak. That 193.1% meant almost a double of that 333.3% of what I started 2020 with. Let’s multiply it and get it exact: 1.931 x 333.3% equals 643.6% (or roughly six and a half times what I had started with less than two years before).
Okay, that up 93.1% didn’t hold, and I finished 2021 at up 39.6%, or at 139.6% of where I started the year. That put me at 465.3% of where I had started 2020, the year before (1.396 times 333.3% = 465.3%). That was at the end of last year.
After today’s close I’m at 53.7% of where I started this year (down 46.3%).
Lest any of you worry about my finances, that puts me at at 250% of where I started 2020, half way between a double and a triple of my entire portfolio. Does that sound like a catastrophe???
For the numerically inclined, 0.537 times 465.3% equals 250.0% from Jan 1, 2020.
And if you would like to go back and count 2017, 2018, and 2019, let’s see, that would be up 84.2%, 71.4%, and 28.4% (as I think I remember, in 2019 the S&P did about as well, or even a fraction better than I did). Okay, 1.842 times 1.714 times 1.284 = 4.054, so I finished those three years at 405.4% of what I started them at.
All right, lets tack those two numbers together to see where I am after all five years:
4.054 times 250.0% equals 1,013.5% !!! So I’m a little over a thousand percent of where I started five years and two and a half months ago. That’s a little more than ten times…
And that’s the after this huge sell-off. So tell me, does this current drastic downturn prove that I’ve been investing all wrong? That I should have been in a S&P index fund and been up a nice safe 90% or so after those five years? Instead of up 913% ??? I don’t think so !
Read the Knowledgebase!
Links to the Knowledgebase for this board is in the Announcements panel that is on the right side of every page on this board. (It’s in three parts)
For some additions to the Knowledgebase, bringing it up to date, I’d advise reading several other posts linked to on the panel, especially “How I Pick a Company to Invest In,” and “Why My Investing Criteria Have Changed,” and “Why It Really is Different.”