Sunday, December 31, 2006

The gains disappoint

Over at my misleadingly-labelled, much neglected and generally ignored Moneybags blog I summarise my investment performance on a notional portfolio over the previous 9 months.

The overall gross return was 8.7% - an annual return of about 10.9% - which wasn’t that wonderful given the 19% growth in the ASX over the full year 2006. I did exceptionally well on a few stocks but dud specs dragged back returns. David Hazelhurst, at The Bulletin, recorded a 186% gain for the full year – he doesn’t have to fear for his job from me. He enjoyed these gains partly because he took much greater risks than I ever would- more than half my investments were in bluechips.

As I always told my mum and dad when I got 'Harry could do better' reports at school my pleadge is to try harder next year. And I will, promise.

I’ve tabulated a new nominal portfolio for 2007 and will see if I can do better. It is based on the presumption that the mining boom will contiinue through 2007 and that the price of gold will remain strong because of unwarranted fears over the US economy - warranted fears would, of course, upset things. I believe interest rates and inflation in Australia will ease during 2007 which should help.

The dud specs that hurt me in 2006 I have retained on the fairly unconvincing grounds that they look cheap.

Your comments/criticisms very welcome.

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