Nice! Any goals for 2013?
Back from #vacation , doing a little year-end paperwork. Total 2012 return (including cash and reinvested dividends) = 18.38%. By contrast, Google Finance says the S&P 500 returned 13.41% in 2012 while the Nasdaq gained 15.91%. I'll take the win.
Over the long haul, I'd like to improve my IRR (internal rate of return) to 20% or better. A lofty goal to be sure, which is why I tend to concentrate on my best ideas, dip my toes where I'm unsure, and avoid wishy-washy "hold" type positions that could take up 5-7% of the portfolio. I'm either in big, experimenting to build a position, or out.
20% sounds very good. But again quite a challenge. Last years was my first year investing in equities. I got at the end a thin 8% return. Like you said, I should avoid the 'holds'. They have grabbed a big portion of the cake.
an 8% return is still a good return. My first few years brought me similar results. Trial, error, and lots of expert counsel from investing friends and colleagues helped me to tune my process to the point that I can concentrate on ideas. So, don't be too hard on yourself. Develop a strategy that works for your income, savings, temperament, and long-term goals.
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