Your returns in 2013

[enoch01]

For 2013, 74.81%.

 

Hey enoch, don't you have a boatload of cash too?

 

I have very little cash at the moment, versus just a couple of months ago.  Recently I've bought Sears (again), Fortress Paper, and EXCO Resources, and added significantly to Sarepta Therapeutics.  I've also bought puts on The Royal Bank of Canada.

 

Enoch,

 

A question if you are willing to share - Why, of all the financials, did you pick Royal Bank of Canada, why not a US bank (given your residency) or another of the big Canadian banks?

 

Thanks in advance.

 

Sent you a PM.

[cubsfan]

34% YTD , pleased, since I'm just trying to beat the S&P500.

 

Overall, since 1/2009 - when I started doing this full time - 5yr average 36%/annually.

 

1 leveraged account - 46% 5yr average

1 unlevered account - 29.5% 5 yr average

 

Since joining this board about 15 months ago - have picked up some great ideas.

Thanks to all - and best of luck to everyone going into 2014!

 

 

[nikhil25]

~5% Fairly new to investing and this board. Looking forward to learning more going forward. Good Luck to everyone for a great 2014!

[Ham Hockers]

what's the chance all these returns are being calculated the same way :) ?

 

[rkbabang]

what's the chance all these returns are being calculated the same way :) ?

 

Not a chance.  I never try to calculate my returns myself.  I just go by what Fidelity tells me every year.  This is their disclaimer on their rate of return calculation:

 

† Returns displayed for periods shorter than 12 months are cumulative, not annualized.

 

** Your Personal Rate of Return is calculated using a money-weighted formula. It measures the performance of underlying investments and takes into account fees and the size and timing of any deposits and withdrawals made during the defined time period. It reflects dividends, interest and capital gain distributions, but assumes they are not re-invested. If you use an account with cash management features, the Personal Rate of Return calculation may be affected by deposits, withdrawals, bill payment and other money movement transactions. The Personal Rate of Return is an estimate only and should not be used solely in making investment decisions. It is calculated using Fidelity-provided information and information from third-party data sources and providers and therefore Fidelity cannot make any representations or guarantees as to its timeliness and accuracy. Fidelity will not provide notification that past data may have been inaccurate, or that it has been corrected. Market Indices are calculated using time weighted returns because it is not possible to invest directly in an index, therefore, they do not take into account deposits, withdrawals or fees. Time-weighted returns assume an investment at the beginning of the period that remains invested for the entire period indicated.

 

I'm sure someone saying that their return is over 100% would still show great returns even if a different method was used.

 

[Ham Hockers]

agreed

 

what's the chance all these returns are being calculated the same way :) ?

 

Not a chance.  I never try to calculate my returns myself.  I just go by what Fidelity tells me every year.  This is their disclaimer on their rate of return calculation:

 

† Returns displayed for periods shorter than 12 months are cumulative, not annualized.

 

** Your Personal Rate of Return is calculated using a money-weighted formula. It measures the performance of underlying investments and takes into account fees and the size and timing of any deposits and withdrawals made during the defined time period. It reflects dividends, interest and capital gain distributions, but assumes they are not re-invested. If you use an account with cash management features, the Personal Rate of Return calculation may be affected by deposits, withdrawals, bill payment and other money movement transactions. The Personal Rate of Return is an estimate only and should not be used solely in making investment decisions. It is calculated using Fidelity-provided information and information from third-party data sources and providers and therefore Fidelity cannot make any representations or guarantees as to its timeliness and accuracy. Fidelity will not provide notification that past data may have been inaccurate, or that it has been corrected. Market Indices are calculated using time weighted returns because it is not possible to invest directly in an index, therefore, they do not take into account deposits, withdrawals or fees. Time-weighted returns assume an investment at the beginning of the period that remains invested for the entire period indicated.

 

I'm sure someone saying that their return is over 100% would still show great returns even if a different method was used.

[Guest longinvestor]

Attached. As reported by Fidelity;

 

My "main" acct is my IRA which has done 11.69% annualized since 2006. Then I look at my 5 year performance and it is more like 15%. I like the 1 year performance, but don't expect that to repeat next year or two, let alone over the next 10 years. Mine is a "do nothing" portfolio, the only trades I have had over the past few years are to concentrate to a 80% BRK portfolio. Hope to make it 100% one of these days.

 

returns_2013.pdf

[Ham Hockers]

for what it's worth, i'm around +16%. that's time-weighted, accruing dividends (not cash accounting). monthly avg. cash balance around 25%. long stock only.

 

 

[LC]

I use the spreadsheet which was posted by a member (I forget who...but you are a lifesaver!) on this forum a while back, which adjusts performance for cash added/withdrawn throughout the year to keep an apples-apples comparison.

[fareastwarriors]

I use the spreadsheet which was posted by a member (I forget who...but you are a lifesaver!) on this forum a while back, which adjusts performance for cash added/withdrawn throughout the year to keep an apples-apples comparison.

 

Can you re-post it?

:)

[investor-man]

I just started investing in April. 36.19% since then. Feeling pretty good about that for my first 6'ish months doing this.

[PJM]

I use the spreadsheet which was posted by a member (I forget who...but you are a lifesaver!) on this forum a while back, which adjusts performance for cash added/withdrawn throughout the year to keep an apples-apples comparison.

 

Can you re-post it?

:)

 

+1 Request to repost the spreadsheet

[kh812000]

I'm up 39.3% YTD per fidelity.  Doesnt seem too impressive given the company here...

 

+1 for the returns spreadsheet!

[rayfinkle]

I'm in the high 30%'s as well. For those using Fidelity, I can't prove it but it seems like returns account for option premiums received as contributing to return calculations immediately. It seems like this is not the "intellectually honest" way to go...assuming all premium is captured then at a minimum you are going to have some timing issues, and if you are exercised the calculation could be muddled further. Anyone have insight into the calculation?

[Palantir]

Just use the XIRR function and note the value of the account the day you added/removed cash.

[jay21]

I don't really track my performance, but I just logged on to my brokerage and apparently my brokerage accounts are up ~20% YTD per my brokerage's return calculation (I'm shocked).  I have a lot of cash that isn't in my brokerage accounts that weighs down the return, but some of that is an emergency fund/living expenses etc.

 

My savings however accounted for the bulk of my change in net worth this year.

[LC]

I couldn't find the original post where this spreadsheet was uploaded, but here it is in google docs:

 

https://docs.google.com/spreadsheet/ccc?key=0Ahf1UeW1kK_xdE9neWJTTDdUT1c0N3VaRGNpLW4wVHc&usp=drive_web#gid=0

 

All the fields highlighted in yellow are for user input. Essentially the spreadsheet converts the portfolio value into units, then adjusts the # of units when cash is added/withdrawn.

 

You can of course change the index comparisons if your benchmarks aren't the S&P/Russel 2000.

 

To whoever posted this in the first place, thank you!

[hyten1]

i have a massive spreadsheet that tracks all this, also tracks progress of family members (how much they put in, their returns, units etc.)

 

 

to be more accurate you should track how you do compare to the indexes in regards to inflow and outflow. meaning if you add $100,000 into your fund, it also means you invest 100,000 into the indexes. so that you can compare how your fund is doing relative to how well/worst the indexes would of done.

 

hy

 

I couldn't find the original post where this spreadsheet was uploaded, but here it is in google docs:

 

https://docs.google.com/spreadsheet/ccc?key=0Ahf1UeW1kK_xdE9neWJTTDdUT1c0N3VaRGNpLW4wVHc&usp=drive_web#gid=0

 

All the fields highlighted in yellow are for user input. Essentially the spreadsheet converts the portfolio value into units, then adjusts the # of units when cash is added/withdrawn.

 

You can of course change the index comparisons if your benchmarks aren't the S&P/Russel 2000.

 

To whoever posted this in the first place, thank you!

[racemize]

i have a massive spreadsheet that tracks all this, also tracks progress of family members (how much they put in, their returns, units etc.)

 

 

to be more accurate you should track how you do compare to the indexes in regards to inflow and outflow. meaning if you add $100,000 into your fund, it also means you invest 100,000 into the indexes. so that you can compare how your fund is doing relative to how well/worst the indexes would of done.

 

hy

 

I couldn't find the original post where this spreadsheet was uploaded, but here it is in google docs:

 

https://docs.google.com/spreadsheet/ccc?key=0Ahf1UeW1kK_xdE9neWJTTDdUT1c0N3VaRGNpLW4wVHc&usp=drive_web#gid=0

 

All the fields highlighted in yellow are for user input. Essentially the spreadsheet converts the portfolio value into units, then adjusts the # of units when cash is added/withdrawn.

 

You can of course change the index comparisons if your benchmarks aren't the S&P/Russel 2000.

 

To whoever posted this in the first place, thank you!

 

I actually tend to disagree with this approach.  e.g., if I were to invest in the S&P, I would not do it in the same manner I would invest in stocks.  For example, some of the skill is identifying when is a good time to buy a security, and which may correspond to a market downturn (e.g., 2009/2011).  An indexer will not do this; instead, they would dollar cost average and never pay any attention.  Thus, I think putting the same amount of money in the S&P at the same time either gives too much benefit to the S&P benchmark if you are right, or doesn't give credit to the S&P benchmark if you are wrong.

[hyten1]

racemize, i agree

 

its just a way for me to compare to something. the other ways is like you said, i would have to basically invest in the indexe virtually to compare to the actual investment i am making, which is too much work :)

 

EDIT: basically it depends on what your benchmark is. what i am trying to compare is active vs completely passive. i am comparing doing work (picking stock) vs me doing no work at all (which is everytime i put in money it automatically gets invested in indexes). obviously i have some control. i usually add money when i think there are opportunities, which usually coincide with the indexes be down)

 

hy

 

i have a massive spreadsheet that tracks all this, also tracks progress of family members (how much they put in, their returns, units etc.)

 

 

to be more accurate you should track how you do compare to the indexes in regards to inflow and outflow. meaning if you add $100,000 into your fund, it also means you invest 100,000 into the indexes. so that you can compare how your fund is doing relative to how well/worst the indexes would of done.

 

hy

 

I couldn't find the original post where this spreadsheet was uploaded, but here it is in google docs:

 

https://docs.google.com/spreadsheet/ccc?key=0Ahf1UeW1kK_xdE9neWJTTDdUT1c0N3VaRGNpLW4wVHc&usp=drive_web#gid=0

 

All the fields highlighted in yellow are for user input. Essentially the spreadsheet converts the portfolio value into units, then adjusts the # of units when cash is added/withdrawn.

 

You can of course change the index comparisons if your benchmarks aren't the S&P/Russel 2000.

 

To whoever posted this in the first place, thank you!

 

I actually tend to disagree with this approach.  e.g., if I were to invest in the S&P, I would not do it in the same manner I would invest in stocks.  For example, some of the skill is identifying when is a good time to buy a security, and which may correspond to a market downturn (e.g., 2009/2011).  An indexer will not do this; instead, they would dollar cost average and never pay any attention.  Thus, I think putting the same amount of money in the S&P at the same time either gives too much benefit to the S&P benchmark if you are right, or doesn't give credit to the S&P benchmark if you are wrong.

[rkbabang]

i have a massive spreadsheet that tracks all this, also tracks progress of family members (how much they put in, their returns, units etc.)

 

 

to be more accurate you should track how you do compare to the indexes in regards to inflow and outflow. meaning if you add $100,000 into your fund, it also means you invest 100,000 into the indexes. so that you can compare how your fund is doing relative to how well/worst the indexes would of done.

 

hy

 

I couldn't find the original post where this spreadsheet was uploaded, but here it is in google docs:

 

https://docs.google.com/spreadsheet/ccc?key=0Ahf1UeW1kK_xdE9neWJTTDdUT1c0N3VaRGNpLW4wVHc&usp=drive_web#gid=0

 

All the fields highlighted in yellow are for user input. Essentially the spreadsheet converts the portfolio value into units, then adjusts the # of units when cash is added/withdrawn.

 

You can of course change the index comparisons if your benchmarks aren't the S&P/Russel 2000.

 

To whoever posted this in the first place, thank you!

 

I actually tend to disagree with this approach.  e.g., if I were to invest in the S&P, I would not do it in the same manner I would invest in stocks.  For example, some of the skill is identifying when is a good time to buy a security, and which may correspond to a market downturn (e.g., 2009/2011).  An indexer will not do this; instead, they would dollar cost average and never pay any attention.  Thus, I think putting the same amount of money in the S&P at the same time either gives too much benefit to the S&P benchmark if you are right, or doesn't give credit to the S&P benchmark if you are wrong.

 

It depends on your investment style.  I've been 95-100% invested for the last 10-12 years or so.  When I have new money to invest I immediately put it into my best idea.  This aversion to holding cash has cost me at times (like in 2008 I was down around 35% and at one point in 2012 I was down 20% for just two examples out of many), but the benefits of this strategy has far outweighed the negatives (>40%/yr since 2005, unfortunately I haven't calculated my gains pre-2005 when I moved to Fidelity, but they were pretty good as well).  If I was an index fund type investor, I would put money into the index fund at about exactly the same times as I invested money in my top pics, so the approach of keeping track of when new money would have gone into the index would be a fair comparison for me.  I don't keep track of that though.

[SwedishValue]

I'm at 36% at this moment. Was happy, then I saw your returns and got jealous :) have averaged around 20% cash troughout the year.

[jeffmori7]

I'm at 36% at this moment. Was happy, then I saw your returns and got jealous :) have averaged around 20% cash troughout the year.

 

Hey, nothing to be ashamed of..I'm around 33% YTD, and we are right in the middle of the distribution according to the poll!

[racemize]

I think the distribution is a little bit odd since 25% is very close to S&P returns.  There's probably a lot of people very close to 25% that are in the 10-24% bucket.

[rayfinkle]

i have a massive spreadsheet that tracks all this, also tracks progress of family members (how much they put in, their returns, units etc.)

 

 

to be more accurate you should track how you do compare to the indexes in regards to inflow and outflow. meaning if you add $100,000 into your fund, it also means you invest 100,000 into the indexes. so that you can compare how your fund is doing relative to how well/worst the indexes would of done.

 

hy

 

I couldn't find the original post where this spreadsheet was uploaded, but here it is in google docs:

 

https://docs.google.com/spreadsheet/ccc?key=0Ahf1UeW1kK_xdE9neWJTTDdUT1c0N3VaRGNpLW4wVHc&usp=drive_web#gid=0

 

All the fields highlighted in yellow are for user input. Essentially the spreadsheet converts the portfolio value into units, then adjusts the # of units when cash is added/withdrawn.

 

You can of course change the index comparisons if your benchmarks aren't the S&P/Russel 2000.

 

To whoever posted this in the first place, thank you!

 

I'm on the same page...when I go through the exercise of calculating returns (that aren't black boxed from a brokerage to some degree)...I create a synthetic fund (in excel) wherein cash infusions are represented as me buying shares at book value. Then AUM and share count is adjusted accordingly.