YEAR ONE REPORT

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.”