"It went up again"or my experiences after exactly 9 years on the stock exchange (08.2013 - 08.2022)
9 years ago, in August 2013, I bought my first securities. On the one hand, they were shares of Deutsche Bank and Sony, and on the other hand, the DWS Top Dividende fund via the capital-forming benefits.
I would like to show you here the annual developments of my portfolio (portfolio value, annual performance, largest position):
- 2013: 1.700€, -12%, Deutsche Bank
- 2014: 8.000€, -1%, Deutsche Bank
- 2015: 16.000€, +4%, Deutsche Bank
- 2016: 34.000€, +14%, DAX ETF & Hugo Boss
- 2017: 38.000€, +7%, DAX ETF & Hugo Boss
- 2018: 37.000€, -10%, DAX ETF & Hugo Boss
- 2019: 61.000€, +20%, MSCI World & Procter & Gamble
- 2020: 112.000€, +5%, MSCI World & Microsoft
- 2021: 181.000€, +34%, MSCI World & Alphabet
- 2022: 180.000€, -12%, MSCI World & Alphabet
The portfolio value has visibly increased over most years, but the performance was poor, especially in the early years, and significantly below the benchmark indices such as the MSCI World or the S&P500.
What did I do wrong at the beginning?
- "I think the brand is cool, so the stock must be good too"
- Mercedes, Hugo Boss or Macy's. As soon as I was a fan in real life, I automatically assumed that these stocks were also super
- "Amazon is valued way too high, AT&T has a low P/E ratio and a high dividend"
- Instead of buying Amazon at 250€ in 2016, I rather bought AT&T at 30€. With AT&T I would now be sitting on a loss 6 years later, with Amazon stock it would have been a tenbagger in the meantime
- "I am smarter than the market"
- The stock has an extremely low P/E, why is no one buying it? I bought and fell into the value trap
- "Let losses run and realize profits"
- Stock XY is not performing, I wait until it is back at the entry price to avoid making a loss.
- Stock XYZ has made +50%, I rather sell to secure profits
- This is exactly the wrong approach when a stock is not performing or you are no longer convinced: Sell! Even at a loss. If the share continues to perform, then one also allows profits to continue to run.
What other experience have I gained?
- No one is interested in politics
- Euro crisis, Syria war, Iran, Crimea annexation, Brexit, Trump, Corona.... There have been countless political issues that have repeatedly caused drops in the markets and in my portfolio - months or years later, you don't even remember them all anymore
- Europe does not perform, the USA does
- Over all these years it has been said again and again "the next year belongs to the European shares". In the end there were always reasons why Europe could not keep up with the USA
- Yes, there are strong European stocks (ASML, LVMH,...). But these stocks usually have a unique selling proposition. But the bottom line is that a significant overweight in the USA is much more successful.
My conclusion after 9 years:
- Make mistakes at the beginning! From this one learns the most
- In the end the markets always rise or to say it proverbially: "in doubt zoom out". Short-term fluctuations do not change the long-term upward trend
- "Never bet against America"said Warren Buffett in 2021. No matter what one thinks about the politics of the Americans, they enforce their interests! This is what you profit from as a shareholder of American companies
- Realize losses & let profits run
