It wasn't a great month for my little portfolio. The benchmark went on a tear in April, rising 3.91 per cent, after a poor showing in March. The G&W portfolio, meanwhile, fell 0.73 during the month.
There was no particular reason for my poor performance. A number of my major holdings declined, mostly for no apparent reason. During the month, my largest holding paid a healthy interim dividend. (Without it, I would have done even worse!)
The G&W portfolio does not resemble the benchmark and — as the last two months have shown — it will behave differently. Over a reasonable period (three to five years), I am confident that the portfolio will turn in satisfactory results. I expect to beat the benchmark over such a period unless there is a significant run up in the price of equities. In flat or declining markets, there is a high probability that I will do significantly better. I am a firm believer in Warren Buffett's rule #1: don't lose money. Sometimes not losing money means lagging the average over the short-term, which is a compromise I am very happy to make.
August 3, 2017
|
April 30, 2018
|
Since Inception
|
Annualised
| |
G&W Portfolio
|
1.0000
|
1.0406
|
4.06%
|
5.49%
|
Benchmark (SPAX2F0)
|
61,250.80
|
66,145.65
|
7.99%
|
10.8%
|
Finally, and most importantly, here is an excellent lecture by Li Lu on the principles of value investing. There was much in here for me to reflect on. Hopefully you find it as useful as I did.
Until next time …
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