This was a great year in terms of making money but a horrendous one in terms of savings. We had higher than usual expense because of the number of travels we made. In short, we made around 128k (~ 10.7k*12) in normal income and were able to save only 43.7k (~3.5k*12). So, we have been saving 35% of our income and spending the rest i.e., 65% of the income. Given my target of 50%, this was a bad rate by any standards.
This year, I decided to take a measure of my performance. In particular, I wanted to know if I have been adding any value, when compared to the Swiss Leader Index (SLI).
My performance (below) is being compared against SLI (without dividends) assuming that I bought the index for all the “cash in” on the first trading day of the year. For comparison, I also have my performance compared against a 10% absolute return.
TL:DR; my performance has been approximately 6% compounded over the years, with most of the out-performance coming from the current year (luck?).
I have 17 positions in total (Altius Minerals is repeated twice), and cash is 20% of the portfolio (larger when I transfer the savings for 2016 into my brokerage account).
I am offering an investment course where I work. It is a 270 minutes overview of everything related to investments. It can be split into three major parts: (a) the basics of investing (stocks, bonds, gold, real estate), (b) the business of investing (risk, asset allocation, portfolio construction, active-vs-passive money management, and (c) the implementation i.e., what to do with your money (recommendation being: invest in a ETF).
I learned a lot from the exercise. In particular, when I ran my calculations, I realized that saving 30k purchasing power a year for 30 years at 5% inflation adjusted return will help me achieve my goal of having 100k/year purchasing power forever (after the savings phase of 30 years of course!).
I also feel quite good about myself this year. I made very small number of decisions and felt quite OK when 15% of my portfolio was gone in the beginning of Jan because of SNB breaking the CHF/EUR peg. I feel much more comfortable in “my skin” so to speak.
I am looking forward to the next year.