Still outperforming
Stock picks are generally outperforming. Again, my paperfolio has historically had a large cash holding using somewhere between 50%-75% of the portfolio value in stocks and the rest in cash. This is because 1. I can’t add money to the paperfolio and there are always more thing to buy as the opportunity arises. 2. because it’s unwise to put all your eggs in one or few baskets. 3. Because for the past few years there haven’t been many stocks fitting my buy criteria until recently. As of the time of writing I have matched the S&P500 including cash, which means I have outperformed excluding cash.
In my own personal real portfolio spanning across multiple platforms, investments, and brokerage accounts I have and would recommend holding spare cash in treasuries, savings, or other cash accounts that can return around 5% APY just to squeeze those extra percentage points in your portfolio’s overall return.
The goal of course is long tem gains driven by high quality value, so while a single good year is reassuring it is nearly irrelevant to the overarching goal of this portfolio. This portfolio has a time horizon of 5 years minimum, 10years+ ideally. Long term gains are the goal!
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Value investing is the only (right) type of investing. Follow my paperfolio.
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