Sharing news and commentary about education, careers, investing, and life.

Sharing news and commentary about education, careers, investing, and life.

Tuesday, January 1, 2008

Everything Investing: 2 Years of Results

I've been investing for a few years, but I'd like to share how I did in my first two full years of investing. Perhaps these results will help drive more readership in our Everything Investing series though I'll warn that I never give out my stock picks or specific ideas:

76% overall return for my portfolio for the full year 2006 vs. 15% for S&P 500
21% overall return for my portfolio for the full year 2007 vs. 3.5% for S&P 500

Now I know benchmarking against the S&P 500 isn't the perfect way to measure one's investment success (believe me, there are many other indexes, risk adjustments to make, etc) but it's a very good track record when you look at the CAGRs of the greatest investors:
  • 29% for 37 yrs. - George Soros
  • 21% for 40 yrs. - Warren Buffett
  • 29% for 18 yrs. - Eddie Lampert
  • 29% for 18 yrs. - Peter Lynch
  • 24% for 13 yrs. - Jim Cramer
  • 15% for 20 yrs. - Benjamin Graham
Here's the source for those numbers.

And though I'm not anywhere close to them in terms of sustained performance, here's mine:
~46% CAGR over 2 years

Here's to a Happy New Year and many more years of high investment returns!

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