The key measurement is the index performance. I think I need to track the index as well.
Looking at the normalized STI index (month's closing value) against my portfolio, I realized that my performance is actually ahead of the STI index stocks. (I had previously posted a calculation that showed STI increase by 31% from Feb 2010 to Feb 2011)
Before I come up with this method of measurement, I had no idea of how I actually perform against the major index. When I saw my portfolio increase by 18% over the last one year, I thought I was doing all right. I felt quite satisfied with that number. When I told my friend about my performance, he thought that I was on the right track because he obviously did worse than I do. I was happy for a while. But I had no idea whether I really out perform the Index.
Then I decided to get serious and try to normalized the STI index using my initial portfolio value and make comparison neck-to-neck. I realized that I am on the right track.
Month Ended | Total Value | Equity Value | Cash Value | Vested | Chg | Port Perf | ST Index |
28/02/2010 | 88,241.76 | 29,100.00 | 59,141.76 | 33.0% | 2750 | ||
31/03/2010 | 81,884.82 | 37,210.00 | 44,674.82 | 45.4% | -7.2% | -7.2% | 2887 |
30/04/2010 | 89,801.52 | 30,650.00 | 59,151.52 | 34.1% | 9.7% | 1.8% | 2975 |
31/05/2010 | 81,884.82 | 37,210.00 | 44,674.82 | 45.4% | -8.8% | -7.2% | 2753 |
30/06/2010 | 84,523.72 | 24,650.00 | 59,873.72 | 29.2% | 3.2% | -4.2% | 2836 |
31/07/2010 | 86,770.52 | 70,610.00 | 16,160.52 | 81.4% | 2.7% | -1.7% | 2988 |
31/08/2010 | 84,503.39 | 55,450.00 | 29,053.39 | 65.6% | -2.6% | -4.2% | 2753 |
30/09/2010 | 89,778.20 | 47,150.00 | 42,628.20 | 52.5% | 6.2% | 1.7% | 3098 |
31/10/2010 | 94,407.07 | 69,550.00 | 24,857.07 | 73.7% | 5.2% | 7.0% | 3143 |
30/11/2010 | 95,045.95 | 60,200.00 | 34,845.95 | 63.3% | 0.7% | 7.7% | 3145 |
31/12/2010 | 107,021.21 | 98,120.00 | 8,901.21 | 91.7% | 12.6% | 21.3% | 3212 |
31/01/2011 | 104,898.73 | 78,760.00 | 26,138.73 | 75.1% | -2.0% | 18.9% | 3180 |
28/02/2011 | 104,988.58 | 18,350.00 | 86,638.58 | 17.5% | 0.1% | 19.0% | 3011 |
31/03/2011 | 104,508.77 | 46,650.00 | 57858.77 | 44.6% | -0.5% | 18.4% | 3061 |
So, what's next?
The key now is to continue to out perform and improve on my performance if possible. Instead of 18% annual return, now, try to target 30% annualized return.
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