Monday, October 18, 2010

Back to Even

I missed this moment. Some day in the middle of September my portfolio got back to even, compared with the end of 2007. It's up several percentage points since.

One more illustration that somebody without Wall Street experience, not a professional investor, can beat major indices in the long run. I had years when my performance was below major indices, but in most years I managed to beat them. My portfolio beat major indices for any 5 year interval since 1998. I think it's even beat for any 3 year interval, but not completely sure.

It's not blind luck. It's not some system. Just a lot of work, at least 10 hours every week, usually much more. Searching for picks, trying to understand current state of economy and markets, trying to predict trends. Sometimes right, sometimes wrong. Huge successes, like with Apple (AAPL), Yahoo! (YHOO), Google (GOOG). Huge disappointments, like (TSCM). Laggards like Home Depot (HD). It's all averaged out to nice 13% annual growth since 1998.

Cause for celebration? A little bit early. I'll get my bottle of good champagne on December 31st. For now, back to work.

Full disclosure: at the time of publication author had a long position in GOOG and no positions in other stocks mentioned. Positions can change any time.

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