Thursday, December 31

Returns for 2009

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Today is the last day of 2009 and it is time once again to review the return for this year. This year has been a good year for me since I bought quite near the lows of the stock market and watch my portfolio rebound with such a ferocity that was totally unexpected by me. I only started to keep track of my portfolio systematically slightly more than a year ago by keeping track of all my transactions and dividends inclusive of any corporate actions. After which, I use the Excel function of internal rate of return to compute my annualized return. My target is to achieve an annualized return of at least 20% inclusive of reinvested dividends over the next one to two decades.

Currently, my annualized return stands at 53.4%. Of course, I do not expect to achieve this kind of return in the long term. This return is partly skewed by the excellent performance of the stock market this year.

Moving on to the return of the stock market for 2010, I'm not very optimistic about the coming year. This view of mine goes against the view of many experts and the general sentiment of the stock market currently. From the beginning of 2009 until now, STI has gained a total of 58.4% and it is currently close to 3000 points. If we were to consider the optimistic view that STI will gain another 30%, it will be around 3900 points. Linking this back to economy, 3900 points was when the economy was at its peak. Given that the economy is starting to show signs of stability and the days of phenomenal growth will not be back so soon yet, I don't think that the stock market will do extremely well this coming year. Of course, my opinion can be wrong so time will tell.

I can foresee that for 2010, I will be holding on and building up my capital and will take advantage of any significant corrections in the market by adding on additional positions. Otherwise, I will probably be monitoring the companies in my portfolio and researching on new companies that meet my investment criteria.

Lastly, I wish everyone a happy new year and all the best for your investments in this coming year !

7comments

  1. MusicwhizJanuary 1, 2010 at 1:11 AM

    Hi Kay,

    Thanks for your views. For me, I think 2010 will be a "Year of Dividends" as capital gains will be much harder to eke out considering the strong run-up in equities during 2009.

    Happy New Year!

    Cheers,
    Musicwhiz

    ReplyDelete
  2. KayJanuary 3, 2010 at 10:06 PM

    Hi Musicwhiz,

    I agree with you. I guess 2010 will be a more relaxing year actually since I will probably be waiting for dividends then capital gains. Happy New Year to you too !

    Kay

    ReplyDelete
  3. A.YJanuary 14, 2010 at 11:19 AM

    Wonder if you have shared us your portfolio in the blog...for our reference of your strategy..

    ReplyDelete
  4. KayJanuary 15, 2010 at 10:22 PM

    Hi Spencer,

    I would prefer not to reveal my portfolio in the public. Perhaps I will reveal a few years down the road.

    Kay

    ReplyDelete
  5. AnonymousJanuary 17, 2010 at 4:38 PM

    if you would be able to share, what was your annualized return last year?

    ReplyDelete
  6. KayJanuary 20, 2010 at 11:18 PM

    Hi,

    For the annualized return for 2009, I have not compute it yet so I'm not able to share the return.

    Kay

    ReplyDelete
  7. PENNY STOCK INVESTMENTSJanuary 6, 2014 at 6:37 AM

    Excellent

    ReplyDelete

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