CapitalTime

Articles on investing and capital management, with a quantitative focus.

#growth - My portfolio of individual growth stocks

Growth Portfolio Annual Update

2020-06-08

My Growth portfolio outperformed the TSX in this time period. Several holdings no longer meet my screening criteria and have been replaced. After today's adjustments, the portfolio holds:

Stock Symbol	Company Sector
CJT	Consumer
MRU	Consumer
CP	Industrial
RBA	Industrial
CSU	Technology
DSG	Technology
BAM.A	Financials
FSV	Financials
FNV	Materials
WDO	Materials

Ideally, the positions should have equal weights. To minimize trading, I don't adjust position sizes if they are reasonably close to equal.

To reduce turnover and trading costs, I am switching to annual updates. Previously, I was updating the portfolio ever 6 months.

Performance

The lifetime CAGR (compound annual growth rate) since inception is 9.5%, compared to the benchmark XIC at 4.0%. This outperformance is significant.

Performance is calculated for each time period shown. I use actual fill prices if there was a trade, or the bid price otherwise. Trade fees are ignored. The XIC return includes dividends, but the Growth return does not.

Start	End	Growth	XIC
2016-12-28	2017-06-19	15.0%	0.7%
2017-06-19	2017-12-27	2.6%	7.2%
2017-12-27	2018-06-18	4.9%	2.5%
2018-06-18	2018-12-17	-11.6%	-10.3%
2018-12-17	2019-06-19	20.1%	16.1%
2019-06-19	2019-12-27	6.3%	5.5%
2019-12-27	2020-06-08	-2.1%	-5.9%
Lifetime CAGR	3.4 yrs	9.5%	4.0%

Alternative start date

Note that the first time period in the above table gives Growth a significant lead. In case this first period was a fluke, I will also calculate performance starting from the second period.

Here is the CAGR performance starting from 2017-06-19

Alternative start	Growth	XIC	Difference
CAGR over 3.0 yrs	6.0%	4.4%	1.6%

The Growth portfolio still outperforms, but with a smaller margin.

— Jem Berkes