Hope everyone had a great 2018 and having a good 2019 so far. We just had about 50cm of snow in Toronto so I left a bit early from work and walked outside which was quite enjoyable!
I have been doing alright. The markets were down quite a bit but they started to pick up lately (which is not great…)
I had a quite busy holiday season from my day job and everything else of my life but have been making some progress on securing funds to take advantage of the markets.
Downtrend in markets and the portfolio may be hard on your mental temporarily and it takes time to process the loss. It took me some time as well but my mind works quite simply and I know from the bottom of my heart, I love buying assets cheaper so my mind quickly turned and I spent some time trying to find ways to take advantage of the discounts.
I was able to secure the funds just a week after December 24 2018 (lowest in 2018 I believe) so by the time I fully secured the funds, the discount was gone so swiftly.
Currently I am being patient and waiting to see whether it will come back. If not, I will not do anything with the funds. If comes back I will strategically deploy the capital.
This would be my capital deployment plan with the funds that I secured.
1. If the markets go back to December 24 2018 level, deploy 20% of the funds
2. Another 5% drop- deploy 10% of the funds
3. Another 5% drop- deploy 10% of the funds
4. Another 10% drop- deploy 10% of the funds
5. Further drop- deploy 10% of the funds.
6. Total crash- deploy the rest and buy as much as I can. I will probably secure more funds
The markets don’t care about me and what I think about but what’s important about having my own plan is that I am in full control of my emotions which enables me to execute according to the plan.
After all, I believe my entire portfolio is made up of top 5% quality of the companies being traded in TSX so I am not worried at all of the short term share price fluctuations and will consider that as buying opportunities. I am confident that I will beat the markets many years to come with the stocks that I own.
One great thing about having available funds is the flexibility that I get. I don’t need to deploy any if I do not see any opportunity and I can pounce when right time comes.
Let’s quickly update how I have done in 2018.
I was down by 1.39% whereas TSX`s 8.9%. I beat the markets by 7.51% but still I am not too happy about the results. I could have done better but again as always I made some mistake of taking someone else’s advice and recommendation without thinking critically by myself. That’s alright though because I learned from it and that will never happen again.
Since inception of managing my own funds, as of December 31 2018, it was up by 46.3% vs TSX’s mere 4.8%.
YTD was pretty good so far.
9.3% vs TSX’s 7.5% on one set of portfolio and
13% vs TSX’s 7.5% on another set of portfolio.
Since inception until January 25 2019, I am up close to 60% (vs TSX’s 12.7%) with Annualized return of 11.3%
At one point in the summer of 2018, I achieved 15% of annualized return which is my biggest investing goal to double my capital every 5 years so I need to catch back up to where it was. A long way to go but I am confident that I will achieve that again.
That’s it for today. Hope you enjoy the rest of January. I will see you in February!
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