I posted recently the internal rates of return for 66 of my investments. I've now completed the calculations for all 94 investments that were held for more than one year:
Shaded returns are investments that I currently hold. The median rate of return is 5.1%. Most of the larger investments are above the median as are the majority of current investments. The median return of current investments is 9.1%.
Powertel and Looksmart were some dotcom era investments that worked out. DeepSkyWeb one that didn't. I can't even remember what FTS was. I held it in 2007-8. Newcastle was a mortgage fund that blew up in the GFC. Legend was a Joe Gutnick mining company that went to zero and HIH an insurance company that was the worst bankruptcy in Australia's history.
1 comment:
While I've mostly given up on trying to pick individual stocks/funds (instead mostly investing in low-cost index funds), I did form the view that rather than trying to get better at 'picking winners' a significant boost to portfolio performance would be achieved by having a few metrics that could predict which companies are at greatest risk of 'blowing up'.
If you could find something that HIH, FTS etc. had in common (perhaps high levels of leverage/company debt, high book:price ratio?) you might be able to filter out some of the worst investments and improve your portfolio average Ror.
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