Outperformance possible?
When you sit on the terrace on Sunday and drink a cup of coffee, there is time to take a look at the overall performance of your portfolio. After the new benchmark function has been released for a while now, I thought I would compare the performance of my overall portfolio with that of the broad indices.
My strategy
This consists essentially of "stock picking", which means I do not own any ETF's or crypto. I focus 95% on dividend stocks that have very good dividend growth, a strong balance sheet and a high ROCE. I have already explained details about this in the post "How do I pick my dividend stocks?".
The result
I started investing in 2017. Therefore, I have compared my overall performance since 2017 with those of the broad indices S&P500 and MSCI World. In addition, I have taken the Nasdaq. Since 2017, the performance is as follows:
my portfolio: +141.43% (+ 15.82% CAGR)
S&P500: +78.24% (+10.12% CAGR)
Nasdaq100: +122,32% (+13,36% CAGR)
MSCI World: +56.34% (+7.73% CAGR)
However, I must honestly admit that I don't know if these values already take into account the dividend received? Maybe you can @Kundenservice answer that.
Who cares?
I do not want to not that this makes me an absolute super investor. On the contrary, of course it takes a lot of luck for the handpicked stocks to perform well in terms of price. I do not want to claim that I can beat all three indices in the long run. However, it is a motivation for me to see that my strategy seems to work at least halfway and to stay on the ball.
Have a nice Sunday,
Michael Scott
Regional Manager Dunder Mifflin
