I am expecting my rate of return over the last 20 years to look bad this year because 2004 was such a good year. In 2004 I gained 42.4% compared to a 13.7% gain for the MSCI World Index (in AUD terms). It was my best year ever in terms of investment performance. The ASX 200 gained 30.3%. You can already see this in this chart:
In 2023 my performance over the last 20 years almost matched the MSCI World Index's performance over the previous 20 years. But this year I am lagging a lot. Why did I do so well in 2004? It was mainly due to leveraging Australian shares. This table shows the AUD gains in 2004 for each investment:
The CFS Geared Share Fund is a levered Australian share fund. It provided the majority of gains. Nowadays I feel that I can't handle that much volatility. The fund is still available. Of these investments I am currently, 20 years later, invested in CFS Developing Companies, Platinum Capital, CREF Social Choice, and TIAA Real Estate.
I started 2004 with a net worth of AUD 170k and ended with AUD 298k.
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