Wednesday, December 30, 2020

My Portfolio 2020

 Here is my portfolio at the end of 2020:

SecurityWeighting
Berkshire Hathaway13.34%
Enterprise Products12.15%
Norfolk Southern11.05%
NVR8.99%
Wells Fargo8.65%
W.R. Berkeley8.60%
Cash8.11%
Melcor Developments6.61%
Gazprom6.50%
National Western Life6.00%
Lukoil4.91%
ADF Group1.97%
J. Smart & Co.1.65%
Nicholas Financial1.48%

This has been my worst year ever in terms of both absolute and relative performance. At the time of this writing my main account is down -2.96% for the year while the S&P 500 is up 17.46%. I do not hold any of the large technology stocks that done very well this year (though I did hold Apple at the beginning of 2020).

Over the longer term, I have still done well. I started investing in early 2008 (great timing I know) but I have lost the records of my performance prior to 2014. My recollection is that I generally outperformed the market during the 2008 - 2013 period. Since 2014, returns for my main account have averaged 14.1% annually, compared to 12.8% for the S&P 500 over this same time period.

I do not feel any particular concern about having done so badly this year. I do wish I had capitalized better on the dip in prices earlier this year. I bought some but I should have bought even more. 

The valuations across my portfolio are generally quite low, especially compared to the broader market. Hopefully that is a set up for a stronger 2021. If I am still doing badly at the end of next year, I may need to reconsider my approach!

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