CapitalTime
Articles on investing and capital management, with a quantitative focus.
Growth Portfolio Annual Update
2022-06-30
These are not stock recommendations; I'm just sharing my stock portfolio. I'm not convinced that picking individual stocks is worthwhile, but I will run this portfolio for a few years and evaluate its performance.
I updated my "Growth" portfolio today. My screening process looks for a mix of profitability and price momentum, so it's probably not correct to use the term "Growth". My current stocks are:
| Stock Symbol | Company Sector |
|---|---|
| DOL | Consumer |
| MRU | Consumer |
| TRI | Professional |
| WCN | Industrial |
| CSU | Technology |
| IFC | Financials |
| TA | Utilities |
| ARX | Energy |
The positions are roughly equal weight, but I slightly underweighted CSU (because it barely passed my screening criteria) and ARX (because it's extremely volatile).
Performance
Performance is based on my actual portfolio, which might have slightly unequal security weights. Trade fees are ignored.
The lifetime CAGR (compound annual growth rate) since inception is 9.0%, compared to the benchmark XIC at 6.8%.
This outperformance over 5.5 years looks promising at first glance, but I think the charts below are more interesting. This seems to show that I'm more or less tracking the index.
| 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% |
| 2020-06-08 | 2021-06-11 | 25.7% | 29.8% |
| 2021-06-11 | 2022-06-30 | -6.3% | -3.4% |
| Lifetime CAGR | 5.5 yrs | 9.0% | 6.8% |
So is this better than the index?
I'm suspicious about the first time period in the table. Perhaps I just got lucky during this period; all the outperformance comes down to just this single time period!
The following charts show the cumulative portfolio return compared to XIC. The first chart shows the full time range, but the second chart starts at 2017-06-19.
I'm more interested in the result since 2017-06-19. It looks like I'm more or less tracking the index!
— Jem Berkes