Monthly Update: As of Friday close of market (COM), the portfolio is just a hair below its all time high. It was up a spectacular 15% just for the month of June, which is the largest monthly increase in absolute dollars; percentage-wise this year to date it is only less than the incredible 21% surge in January. YTD that puts the portfolio up 84.71%. Yes…I too am incredulous. I never would have dreamed or hoped it would be up this much again this year, but am happy for my conviction in these great companies, the homework I’ve done to research them, and most of all, for NOT trying to time the market. If I had tried, I might have gotten out in February when the portfolio was up 31%… or in April when it was up 46%. I don’t know where it will end this year (an arbitrary endpoint date, regardless), but when I compare the portfolio to the 6/30/19 YTD average return for the five major indexes I track (S&P 500, Russell 2000, IJS, Dow and Nasdaq), which combined are up 16% YTD…well, the numbers and portfolio speaks for itself. I’m even more impressed when I realize those same indexes are only up on average 6.3% since the beginning of 2018 (18 month period), while the portfolio is now up over 180% in the same period…so I’m sorry and you will have to excuse me if I don’t buy the argument that picking GREAT fast growing companies can’t beat the ETF’s and indexes. Just think about it: Why would anyone want to buy all the companies in the indexes and ETF’s and thereby end up with all the best AND worst companies in them. Half of them have to be the worst half, by definition. Even if you just did a little homework and tried to whittle down the best half, you would have to outperform those ETF’s and indexes. I have tried to to this with the top 10 to 15. Yes, someday I may get slaughtered…someday! 😉.
But when I think about those poor Germans with NEGATIVE interest rates (yes, negative!! They have to PAY the bank to keep their money in the bank…and the German law also requires any amounts over a certain threshold to be kept in the banks), I can’t even imagine and have to surmise many will soon be turning to equities to invest. I do hope you all had a wonderful 4th of July holiday.
Coming to you from the Basque country of Northern Spain where I’m headed to run with the Bulls in Pamplona next week….I’ll try NOT to make any headlines in the Pamplona 🐮 news!!
Cheers! -Victor
