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It’s that time of year when people share their p/f performance (inc me), but I’m already noticing a tendency for the green-eyed monster to come out, with people dismissing higher returns than they deem reasonable or too scared to share a hideous year for fear of being judged.
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None of this is surprising - it is human nature to wish to compare yourself against your peers & to fear being judged if you fall short. I’m as guilty as anyone, but I have tried to flip it up in recent times to ensure I’m learning rather than regretting.
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Remember, you invest or trade to achieve YOUR goals &, ultimately, if you win or lose over any given period, the only person you need to answer to is YOU!
However, these is value to be taken from (some) of the information shared.
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However, these is value to be taken from (some) of the information shared.
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If someone is kind enough to share enough info then you should be able to get a feel for their investing style - the companies they like to hold, their risk/reward profile, their average holding period, what jurisdictions they favour, etc... some will require further digging.
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You then have a useful comparison:
a) do you like their style?
b) could you stomach their risk profile?
c) have they thrown up an angle you had never previously considered?
etc.
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a) do you like their style?
b) could you stomach their risk profile?
c) have they thrown up an angle you had never previously considered?
etc.
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This doesn’t mean you start copying their style/stock selections, but it should give you food for thought when reviewing your own p/f & short/long-term goals.
If you aren’t already tracking key metrics accurately then ask yourself why not? There is generally no good excuse.
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If you aren’t already tracking key metrics accurately then ask yourself why not? There is generally no good excuse.
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Finally, remember that all you read in this respect should be taken with a healthy dose of scepticism. If something doesn’t smell right, then move on, as they’ll be nothing to learn. Don’t dwell on it - YOU don’t benefit from doing a long-term audit & these folk won’t change.
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