3 years ago, I learnt a small lesson on the investment principle of Buy and Forget. One of things I learnt from Warren Buffet is to consider every stocks you buy or sell as if it is the last transaction you do in the next 10 years. (Go sailing for 10 years before you return, or something like that).
Of course, I dont have that kind of patient. In fact, I used to twiddle my portfolio every few weeks (if not every day). But then I keep remember this lesson and decided to do a little experiment a year ago. On 19th Nov 2005, I made a few adjustment to my portfolio and I didnt login to my E*Trade account for exactly one year.
Here is how I did:
| YTD | JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV | DEC | ||
|
19.85% | 6.05% | -1.71% | 3.81% | 1.85% | -6.40% | 4.81% | -1.19% | 5.72% | 1.68% | 1.24% | 3.08% | – | |
| Q1 Performance 8.21% |
Q2 Performance -0.09% |
Q3 Performance 6.23% |
Q4 Performance 1.24% |
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|
12.25% | 2.55% | 0.05% | 1.11% | 1.22% | -3.09% | 0.01% | 0.51% | 2.13% | 2.46% | 3.15% | 1.69% | – | |
| Q1 Performance 3.73% |
Q2 Performance -1.90% |
Q3 Performance 5.17% |
Q4 Performance 3.15% |
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|
10.91% | 4.56% | -1.06% | 2.56% | -0.74% | -6.19% | -0.31% | -3.71% | 4.41% | 3.42% | 4.79% | 3.34% | – | |
| Q1 Performance 6.10% |
Q2 Performance -7.17% |
Q3 Performance 3.97% |
Q4 Performance 4.79% |
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That wasn’t too bad. The strategy works pretty well. But it requires great discipline and a lot of homework, making sure I know exactly what I am looking for in this period.
Okay, time to do some homework and adjust my portfolio for 2007…and then forget it. :-)
…okay, maybe not totally forget it. at least keep abreast of the news…
Update: A friend asked me if this is just a hypothetic portfolio. No, it is real. It is my own cash in my E*Trade account. My past performance can be found here: 2001 & 2002 and 2003. (forgot to blog in 2004 & 2005). I also blogged about my investment strategy if you are interested (altho some people disagreed.)
