Saturday, October 20, 2012

All man's miseries... (Q3 D&A)

So, it occurs to me that my blog is becoming pretty damn boring.  In fact, in terms of trading, I'd say my 2012 portfolio activity is slightly less exciting than watching paint dry.  How come?

Well, maybe you've heard the saying, "All man's miseries derive from not being able to sit in a quiet room alone" (Pascal).  Or, if you're a value investing groupie like me, maybe you remember Pabrai saying "The correct way to set [the investment business] up is to have gentlemen of leisure, who go about their leisurely tasks, and when the world is severely fearful is when they put their leisurely tasks aside and go to work."

So where's the fear?  Sure, we hear about our growing debt/deficit, our political system is a mess, and global tensions continue to rise.  But the market continues to hit new highs!  Meanwhile, I continue to pare back investments and raise cash.  So are investors, collectively speaking, whistling past the graveyard?  Or am I the investing equivalent of chicken little?

Anyway, going back to Pascal and Pabrai, I think this is the perfect time to sit on your ass and do nothing.  Remember, when it comes to investing, temperament is half the battle, and being comfortable with inactivity (and a high % of cash) can really come in handy.

Anyway, now that I've put in my 2 cents, let's talk performance.

  • I came into the year with $138,179, and in June I withdrew $10K from my account.  I finished Q3 with $209,194.
  • My annualized rate of return for 2012 is 86.9% vs. 21.1% for the S&P (assumes dividends reinvested and 10K had been withdrawn from my "Hypothetical S&P" portfolio, thus keeping the comparison to be apples-to-apples).
Below are the following exhibits: 6+ year performance summary, waterfall graph, holdings summary, and quarter-to-quarter bridge (all values are as-of 9/30/2012, click to enlarge).

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