[Here's my last performance report, for reference].
OK, just in time, my performance analysis got a bit more sophisticated. It now includes dividends, and is calculated on a weighted average gain basis, so now the impact of larger & smaller portfolio stakes is recognized. I think I’ve tracked any increase/decrease in portfolio holdings pretty well during the year, via Twitter (so plse sign up as a follower!) & blog comments. [No point in having interested readers if I don't post such relevant info on a timely basis]. This allowed me to calculate an average portfolio stake for each holding, which I think is the best metric to use.
I did, however, stick with my original yr-end 2011 or 2012 write-up prices as a cost base – I didn’t want to drive myself crazy calculating average net purchase prices! However, I know I’ve subsequently added to portfolio holdings at higher & lower prices, so I think that pretty much cancels itself out. It also means I’ve omitted partial profits harvested on certain holdings, so my total return may be marginally understated.
Overall, eyeballing my respective analyses, dividends & portfolio weightings have in total (on a pretty even split) added about 2-3% to my annual return. The pretty low contribution from dividends may surprise you, but don’t forget I’m none too enamoured with them… See here, here & here. As far as I’m concerned, if you’re impressed enough with a stock’s valuation & prospects to actually buy it, surely you’d prefer to see it compound its earnings?! Only a third of my holdings pay a dividend.
OK, we should let the figures do the talking now. Please note any holding marked thus** has been completely sold off. And if anybody thinks I’m moving the goalposts here (vs. previously measuring performance via a simple average gain, exc. dividends), I include a complete Excel analysis file below for your perusal. [It also includes each holding's website link, for reference]:
2012 Wexboy Total Portfolio performance was +20.2%.
My 2012 Baker’s Dozen performance was slightly better at +21.0%.
Looking at individual stocks, the winners really speak for themselves. There was no real game-changing/unexpected news involved (except for Avangardco at yr-end, which was completely ignored!), they simply made steady progress.…
