Austock portfolio versus my model portfolio update (as at 2nd Dec 2011)

Austock portfolio versus model 2 Dec 2011Its been a while since I gave an update on the performance of my model portfolio versus a selection of stocks made by Austock. This is mainly due to me being exceptionally busy rather than not wanting to provide an update. In the last update on 28th Oct 2011, the model portfolio was lagging behind the ASX200 accumulation index by almost 3%, but still 2.4% ahead of the Austock portfolio. In the latest update – see picture above, my model portfolio is now leading the Austock portfolio by over 4%, and trailing the Accumulation Index by less than 1%. Performance is still not that good when you consider that my return since 6th July is  down 6.4%. I would’ve been better-off putting the cash in the bank. Having said that, the Austock portfolio is down more than 10% since July 2011.

Stock markets have continued to be volatile. Some days the Australian market follows Wall Street, and on other days we seem to be forging our own path. The rise and fall of some stocks’ prices has been hard to fathom. For some companies, no news is good news and for others it seems to be bad. Just goes to show how the market is pulled this way and that by short-term factors, investors confidence and their psychology.

Europe’s and America’s debt issues are still a storm cloud hanging over investor’s heads, and there doesn’t seem to be any end in sight. It’s all doom and gloom.

During times like this its important to remember that investing is for the long-term, and these issues will pass…at some stage anyway. It’s also important to remember that it’s almost impossible to time the market, so there’s no point saying “should I sell now and maybe buy back in later when it reaches the bottom?”

Look at all your stocks and remember why you bought them. Are they still on target to meet your aim? And if so, are they cheap? You might want to consider buying more. If the stocks don’t look like meeting your goal, you might need to consider selling all or part of your holdings. Maybe you can also see better opportunities out there.

Personally, I’m sitting on all my stocks in my portfolio and SMSF, and biding my time. I’m happy with my current list of stocks and I’m confident that many of them will perform well in the future. I’m not in a position to be able to buy much more at the moment, otherwise I’d probably be shopping like there’s no tomorrow.

I’ve also attached the updated spreadsheet (135kb), so you can see the detailed performance of each portfolio.


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