2Yr·

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

#benchmarking
#dividende
#dividendenstrategie

17 Comments

Pope Donkey XXI@DonkeyInvestor

2Yr

Now only your strategy is missing

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Tim@Tacticus

2Yr

I would always use the MSCI ACWI as an additional benchmark. It is also a good benchmark.

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Nico Uhlig@RealMichaelScott

2Yr

@General_T_Regnery thank you. The MSCI ACWI is not that different from the MSCI World in terms of performance. A quick and dirty performance comparison gives about +48% performance for the ACWI.

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Tim@Tacticus

2Yr

@RealMichaelScott
Ah, ok. My benchmarks have only been starting for about 1 year since I just got into the stock market. The MSCI ACWI has double the return (about 4%) compared to the MSCI ACWI (about 2%). Surprised me.

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Nico Uhlig@RealMichaelScott

2Yr

@General_T_Regnery yes, one year is relatively short and not that meaningful. That's why I deliberately refrained from looking at even shorter periods.

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Tim@Tacticus

2Yr

@RealMichaelScott
Ok. But it's really stupid that you can't go back further than the investment start date. Especially as a beginner on the stock market, this would be more meaningful about the sense of one's own portfolio strategy.

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Nico Uhlig@RealMichaelScott

2Yr

@General_T_Regnery Well, that can't be technically possible because it is the time-weighted return. That means it is taken into account when you invested in what and how much. Unfortunately, you can't calculate back according to the method because there are no personal entry points.

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Tim@Tacticus

2Yr

@RealMichaelScott
Yes, as it is not now, of course. But you can go back in time with the amount of the position that was invested for the first time. Quasi what would have happened with my money X, if I had invested already in the year X. Is interesting for me in this case, since I came the largest part of the invested sum by savings plan. There the entry points are rather negligible.

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Nico Uhlig@RealMichaelScott

2Yr

@General_T_Regnery then it would be a nice exercise in Excel to do it personally 😅

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Thomas Hauck@tomtom38

2Yr

Sorry what does ROCE mean?

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Nico Uhlig@RealMichaelScott

2Yr

@tomtom38 Return on Capital Employed. I wrote an article about this a good half year ago. Feel free to browse through it.

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Nico Uhlig@RealMichaelScott

2Yr

@tomtom38 https://getqu.in/JINEKJK5UV51/z2AtCm7bS3/

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Kundenservice von getquin@Kundenservice

2Yr

No dividend is included in the benchmarking yet, but this is coming. :)

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Dividende > Zinsen@GoDividend

2Yr

@MichaelSB82 follow that one ⏫ times and browse the profile times 💁

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Cro@Cro

2Yr

Simply class 👍🏾🚀

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Paketknecht@Paketknecht

2Yr

Top. And as you can see it is possible to beat the market, but almost always with more risk. If you pick around 20 companies that have a strong business model like $MCD, then the probability of beating the market is quite high, but you don't have 500 or 1600 companies like in the benchmark, but only 20. More risk, more possible return.

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Stulle 🥪@Stullen-Portfolio

2Yr

Respect! 🚀⚜️👏 #rocket

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