Rate of return

As every investor, my portfolio is performing quite well. I want to note a few things about my medium term goals.

My savings were shown in a previous post (see here). Following should be the value of my portfolio by the year end, assuming different rates of return compounded annually. Note that I have not included my savings for the year 2013 to my overall calculations here.

Rate of return (in %) Value (CHF) Gain (CHF)
0 75,000 0
10 92,000 17,000
15 101,000 26,000
20 111,000 36,000

Given that my portfolio is up CHF 9,500 I don’t think I can achieve more than CHF 26,000 by the end of this year. I have also stopped buying and have continued to lighten up some of my risky holdings. This puts further contraint on my portfolio given the underlying appreciation of stocks in general.

I expect recovery in MT, E.On, BAC, SAN and CAF. A 30% appreciation overall is certainly achievable. This will add around 6000 to my portfolio. So, if I do not find any new opportunities and the market continues to run wild then I am looking at more like 10% rate of return.

Oct 25, 2013 I am up sfr 25,000 already, which is a 15% annualized rate of return since I started investing. I have been helped amply by luck and the fact that the stocks are becoming more and more expensive. If the crazy run lasts, I might even be looking at a 20% annualized rate of return since I started investing.


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