So ends 2018, and with that, my 10th year of investing in the stock market. I guess 10 years can be seen as long term enough for investing?
For 2018, STI has been down -9.8% (not inclusive dividends). My portfolio has achieved -6.4%. Kind of oxymoron to use the word "achieved". After all, what is achievement here when it has been negative? Can I console myself that I over-performed the STI by 3.4%? Oh wait, but my dividend yield for the year happens to be precisely 3.4% too. That means I only matched the market? Nope, most definitely a C- year.
Compared against 10-year average out-performance of 5.6% (or 2.33% given average yield of 3.27% dividends), 2018 has been a drag on my 10-year outcome.
Overall, the 10-years internal rate of return achieved has been 8.6%. Not too shabby, since my FIRE planning norms was based on 7%.
Against the backdrop of the recent downturn, what has been my reaction? Excitement! Yet another opportunity to pick up things on the cheap.
Happy New Year 2019! Great health and good wealth.
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