Read? 9M 2015 Investment Performance Report
A Goal-based Approach Investing Strategy
Uncle8888 has adopted a Goal-based Approach investing strategy by setting for himself a 10-year progressive Goal Targets to be achieved for each year from 2012 to 2021.
Our investing journey is not Horse Race or Rat Race where we compete against others. No! It is our investment Marathon Race where we set our own pace and compete against ourselves to win our own race.
Year 4: Full Year 2015 Result for Tap No 3 (Cash Flow from Investment Portfolio)
Achieved 33.0% against 34% of 2021 Goal Targets.
Investment Portfolio XIRR
Track, Measure and Visualize!
Without doing it; how to revise investing strategies and to improve year-on-year investing performance?
Investment Portfolio's XIRR includes all investable cash plus the current stocks value at market closing price as on 31 Dec 2015.
Since one year ago: -8.6%
Since 1 Nov 2008: -1.5%
Since 1 Jan 2003: +7.6%
Since 1 Jan 2000: +7.1%
The reality of riding market cycles of Bull and Bear
This reality cannot be anyhow extrapolated in any form of theoretical knowledge including the most popular form of compounding interests - the Eight Wonder of the World.
No. You can't!
Embracing Three Taps Solutions to Retirement Income For Life Model
Uncle8888's Wealth's Formula:
Wealth = Asset Value + Cash Flow
Where Sustainable Cash Flow = Tap 1 + Tap 2 + Tap 3
and volatile market pricing of Asset Value becoming less significant.
Since Tap No 3 is enough to supply the liquidity needs; Tap No 1 will remain shut.
Uncle8888's Tap 1 can sustain up to 2037 and covering up to 89% of his past highest annual household expenses since 2002 using asset-down strategy when it is necessary to supplement any shortfall in his Tap 3 (Investment Income)
Now, he will have a peace of mind of passing over these non-market volatile assets to his spouse, an investing idiot.
Posts
CW,
ReplyDeleteThat was quick!
I was a bit uncomfortable in recent weeks when we seem to agree too often...
Was afraid others may mistake us for Batman and Robin. Don't look at me! I'm not getting into that leotard with my stomach sticking out...
Its good to remind readers we are two completely different insects ;)
The funny thing is - despite being polar opposites - we are merely different sides of the SAME coin.
Must drive some readers nuts! LOL!
But to the astute, its painfully obvious where we have common grounds. Don't say it out loud! Shhh...
Stay healthy; stay frisky!
Without you to cross swords with, how would I know my swordsmanship have improved?
Grasshopper and Ants are still insect. :-)
DeleteHi Uncle CW
ReplyDeleteStill a very respectable 7.1% annualised since 2000.
Really great results though this year was down.
2015 was the hardest year to make money in 78 years
ReplyDeleteIt's been a really, really tough year for returns.
According to data from Societe Generale, the best-performing asset class of 2015 has been stocks, whose meager 2 percent total return (that is, including dividends) still surpasses those of long-term bonds, short-term Treasury bills and commodities. These minimal gains make 2015 the worst year for finding returns since 1937, when the cash-like 3-month Treasury bill beat out other major asset classes with a return of 0.3 percent.
Larry McDonald, head of U.S. macro strategy at Societe Generale, said the all-encompassing lag in performance is one reason why major money managers have done so badly this year. 2015 has been particularly troublesome for hedge funds, the average of which is down about 4 percent this year according to Hedge Fund Research.
"It's been an absolute meat grinder of a year," McDonald said. "Hall-of-fame legends, [Warren] Buffett, David Einhorn, Carlos Slim, those are my favorite investors of all time and they all had bad years."
Famed investor Warren Buffett is seeing his worst year since 2008, with Berkshire Hathaway shares down more than 11 percent year to date. Bill Ackman of Pershing Square Capital sent a letter to investors in December that said 2015 may be the fund's worst year since it was founded in 2004.
Hi CW,
ReplyDeleteNevermind, 2015 is over! Just hope 2016 will be better. If not the market, but the "we" must be better!
I do not know 2015 is that bad ! Sounds like even 2008 is better for those top managers.
ReplyDelete
ReplyDeleteWilliam Ackman's Pershing Square hedge fund ended 2015 with a 20.5 percent loss.
Separately, Barry Rosenstein's Jana Partners hedge fund ended the year with a 5.4 percent loss, marking its first down year since 2011 and only the third time it has lost money for the full year.
ReplyDeleteBOSTON: Billionaire investor William Ackman's Pershing Square Holdings hedge fund ended 2015 with a 20.5 percent loss after Valeant Pharmaceuticals, a top holding, has battered in the second half of the year.
The fund, one of several portfolios run by the firm, ended December nearly flat with a 0.3 percent gain for the month, Pershing Square, one of the industry's most closely watched hedge funds, told investors in an update.
News of the sharp drop wasn't a surprise since Ackman told investors two weeks ago that the year would likely end up being the worst in the firm's 11 year history. But it illustrates just how volatile the activist investor's returns can be after he scored a 40 percent gain in 2014 when he ranked among the industry's best performers.
(Reporting by Svea Herbst-Bayliss)
- Reuters
Akman has a long sour fued with Carl Icahn until they made up last year embracing each other.
DeleteThese billionaire fund managers sometimes also spat like children in school.. :-)