2021 investment returns

[d5dude]

last year I returned 35%, a few percentage points above passive benchmarks, but nothing much to write home about. But definitely this year I'm considering switching to fully passive. Many years of doing active investing just to beat passive benchmark by a a few percentage points a year (and sometimes losing). Overall I've outperformed the indexes but only by mid double digits over the same time period. Just wondering if active is really worth it.

The MSCI world index has returned roughly 9% annualised over the last 35 years, so a "few percentage points a year" adds up to A LOT over a long period of time. An additional 3% return compounded over 30 years will more than double your total return, its definitely worth it if you can consistently outperform the indexes, that is unless you are spending all your time trying to beat the market.

 

[hwmook]

last year I returned 35%, a few percentage points above passive benchmarks, but nothing much to write home about. But definitely this year I'm considering switching to fully passive. Many years of doing active investing just to beat passive benchmark by a a few percentage points a year (and sometimes losing). Overall I've outperformed the indexes but only by mid double digits over the same time period. Just wondering if active is really worth it.

If you are getting more than passive then why is it not worth the effort unless you are doing a lot of work for your active approach.

I got 52.19% returns for 2021 so my active approach make a lot of difference to my returns.

 

[Strained]

If you are getting more than passive then why is it not worth the effort unless you are doing a lot of work for your active approach.

I got 52.19% returns for 2021 so my active approach make a lot of difference to my returns.

I don't know about you guys, for me, have to read macro news almost every other day, analyze quarterly results follow the company and its related fields all this effort for maybe 1-5% additional a year isnt that worth it to me. It really has gotten exhausting after 7+ years.

In my view I have a goal of what I want before I retire. I know that even if I put in a passive index fund, I will eventually achieve that goal, so why rush? Furthermore my outperformance may have been a lucky streak or due to outsized risk taking instead of due to skill. I think there is also a real risk of underperformance.

For me, the question is why take all this risk taking and energy when hitting your goal is an eventual certainty. Just feel like taking it easy, my 2 cents.

 

[hwmook]

I don't know about you guys, for me, have to read macro news almost every other day, analyze quarterly results follow the company and its related fields all this effort for maybe 1-5% additional a year isnt that worth it to me. It really has gotten exhausting after 7+ years.

In my view I have a goal of what I want before I retire. I know that even if I put in a passive index fund, I will eventually achieve that goal, so why rush? Furthermore my outperformance may have been a lucky streak or due to outsized risk taking instead of due to skill. I think there is also a real risk of underperformance.

For me, the question is why take all this risk taking and energy when hitting your goal is an eventual certainty. Just feel like taking it easy, my 2 cents.

I have been doing similar stuffs as you but I don't view it as a chore. It has become a hobby for me so I do not resent it. If I do not like doing these stuffs then I would consider just putting everything into index funds and forget about it.

 

[Thoreldan]

my investment return = iwda return.
simple portfolio.

 

[limster]

my investment return = iwda return.
simple portfolio.

congrats its a good return. My plan is to buy more world ETFs next year and do less stock picking!

I'm reading the various local bloggers reporting their 2021 returns... seems that most of them underperformed the standard world index as well. Maybe blogging is bad for your returns if it causes you to trade too often in order to post portfolio updates....

 

[Thoreldan]

congrats its a good return. My plan is to buy more world ETFs next year and do less stock picking!

I'm reading the various local bloggers reporting their 2021 returns... seems that most of them underperformed the standard world index as well. Maybe blogging is bad for your returns if it causes you to trade too often in order to post portfolio updates....

I am not a good stock picker and definitely do not enjoy doing all the research.
There is too much noise involved. Earnings, companies/rival news, sector rotation, analyst rating, inflation, WSB hype, Youtube, Reddit, blah blah.

 

[Thoreldan]

If you are getting more than passive then why is it not worth the effort unless you are doing a lot of work for your active approach.

I got 52.19% returns for 2021 so my active approach make a lot of difference to my returns.

hi, you're more of a positional trader?

 

[light84]

I don't know about you guys, for me, have to read macro news almost every other day, analyze quarterly results follow the company and its related fields all this effort for maybe 1-5% additional a year isnt that worth it to me. It really has gotten exhausting after 7+ years.

In my view I have a goal of what I want before I retire. I know that even if I put in a passive index fund, I will eventually achieve that goal, so why rush? Furthermore my outperformance may have been a lucky streak or due to outsized risk taking instead of due to skill. I think there is also a real risk of underperformance.

For me, the question is why take all this risk taking and energy when hitting your goal is an eventual certainty. Just feel like taking it easy, my 2 cents.

I have the same thoughts. I been picking stocks and my portfolio is edging over the index by maybe 2-3% for past 10 years plus.

I feel not worth the effort and it’s getting tiring. Is a lot of work to study the companies, financials, annual reports, valuations etc. I just buy VWRA these days on regular basis and use my time do other stuff instead. Those world index average 10% for past 50 years. Just stick with that and can’t go wrong.

 

[sansanjikikut]

Wonder for long term holders how often do you all usually Take profits if at all? During a calendar year

 

[sohguanh]

Wonder for long term holders how often do you all usually Take profits if at all? During a calendar year

Talking about unit trust here.

For CPF when identify a potential just switch sell get profits and buy into that potential fund becuz if sold proceeds go back to CPF investment account when you buy again incur the bank fee again.

For cash it depend if the unit trust already pay dividends periodically just keep it there like passive income. If no dividend depend the monies need for any emergency else same as CPF identify a new potential sell get profits buy into that potential fund.

Sell unit trust for me is usually Jun Dec as I rebalance twice a year. Not sure if need to reduce to quarterly as full-time job can be tiring at times.

As for stock and ETF I let other readers share. My stock are REIT so get dividends no selling unless get delisted forced to sell to the acquirer at their asking price e.g Soilbuild REIT

 

[hwmook]

hi, you're more of a positional trader?

I invest in individual stock, ETF. I will increase/decrease my allocation depend on my own valuation of future gains.

 

[Sarutobix]

did almost 100%+ YTD for 2021 but the recent market dip for small caps in the US market murdered my gains. now probably about 50%+. essentially i almost double whatever I used to invest since 2020 before the dip happened.

 

[polyglob]

Wonder for long term holders how often do you all usually Take profits if at all? During a calendar year

I suppose the answer depends on your life stage.

When I had employment income I invested according to my asset allocation (not all in stocks) and seldom sold.

Then I unemployed and decided to retire. Last 2 years I took profit from stocks for CPF VC3A and VHR. For me CPF accrued interests is good, becoz it gives me a larger CPF hole to fill.

 

[wutawa]

Finally managed to have paper gain in 2021 after 1 full year of paper loss in 2020.

 

[celtosaxon]

I just calculated my equity portfolio returns for the year and it’s just under 20%. Not feeling super great about it, but I chalk it up to the price of diversification.