It’s been twelve months since we started the dummy portfolio (we’re calling the start 1 Sept 2019, which is when we completed investing the full starting capital of $20,000).
So how did we do?
According to my year-end report, our return was 6.27%. That’s a long way short of our long-term target of achieving an average of 19.5% return per year, but obviously 2020 has been a difficult year for the economy and the markets. Some years are going to deliver a better return than others.
The other goal we have is for QAV to beat the All Ords, on average, by ~10% per year with a low-effort, low-risk strategy. That’s a good way of checking our comparative performance.
The XAOA (All Ords Total Return index, which includes dividends) returned -3.28% for the twelve months from 1 Sept 2019. Which means we out-performed the XAOA by 9.55% – which is right on track. Even though we started the portfolio only four months before COVID hit China – which impacted our portfolio early, as we had a lot of mining and travel stocks – we ended up right on target.
As you can see in the charts below, a lot of our best performing months were in May, June and July while the country (and the world) were in lockdown. As Tony says – “it’s time in the market, not timing the market, that counts.”