Thursday, December 29, 2016

The stock portfolio development 2016

2016, stocks, portfolio

As all of you know my target in the end is to reach 750 k€ invested on the stock market that will be my retirement fund. This means that I should not forget to every now and then look at the development for reaching this target.

For the previous please visit the stock portfolio development 2015.

As can be seen in the graph above my plan is working well. In my first year (2012) of investment I ended up with a stock portfolio in the value of 17,659 € which was 4,744 € more then my plan required. In the second year (2013) my stock portfolio grew with 73 % and ended up with a value of 30,623 € which was 4,723 € above my target meaning that I managed to stay ahead of my plan but I did not manage to increase this advantage. In the third year (2014) my stock portfolio grew with 57% and I ended up with a value of 48,208 € which is then 8,333 € ahead of my investment plan which means that I managed to double my advantage during 2014. In the fourth year (2015) my portfolio grew by 53% and I am up at a value of 73,579 €. My plan was to have a stock portfolio of 54,915 € in the end of 2015 which means that I am now 18,664 € ahead of my plan.

During my fifth year (2016) which was horrible in terms of new investments my portfolio still grew by 20% and the value is up at 88,414 €. According to my plan I should have had stocks for a value of 71,102 € in 2016 which means that I am still 17,312 € ahead of my plan which is good but it is still disgraceful that I did not manage to increase the difference and that it even decreased in comparison to last year! Very bad! I need to improve this during 2017.

The only reason for why I am ahead is still only because of that I have managed to push in much more money each month than what I calculated from the beginning. The strategy was to invest 1,000 € per month which would have given 12,000 € fresh euros during 2016 but instead I managed to push in around 15,000 € so 3,000 € more than according to plan. This can also be seen in the graph below. That the invested versus the current value of the portfolio are very strictly following each other so I am definitely not a good stock picker.

2016, invested

Conclusion: The only thing saving me is that I keep pushing in more and more and more money into stocks. I will keep doing this for many more years since that is the only way to get the snowball rolling and to start getting a size of the stock portfolio that will one day be able to sustain itself as well as being able to hand out enough dividends for a cheap person to live on.

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