New Performance Tracking Section on the Blog

Reading Time: 2 minutes

You don’t get better at investing without comparing your process with outcomes.

I’ve been thinking a lot about the point of this blog. Currently, I view it as an investment journal. But, I wanted to accomplish a three things when I started:

  1. Put my investment theses in writing. Compare the thought at the time of writing with the outcome (what was right, what did I miss)
  2. Write down themes or ideas I talk about with friends…that end up being “lost” conversation because we never wrote it down
  3. Have fun. Become a better investor. Become a better writer. Hopefully let others share in the outcomes.

In order to hone in on number one and number three, I am going to track performance of stocks I have written about on this blog with their performance against the Russell 3000. Why the R3k? Because I do some big names, some large names. Rarely anything international, and that’s my personal benchmark of what I would otherwise invest in.

If, overtime, I see that I am consistently underperforming, I’ll re-examine the process.

If I am doing well, I’ll examine which ideas seem to perform the best and why.


A few things to mention:

  • Unless recommend closing a position specifically, the position runs on
  • Equal-weighted since I’m not posting my full portfolio and also not writing about why I like one idea over another (but this may change in the future)
  • Using total return so there may be differences in price change vs. total return if there are big dividends
  • If I write about something twice, I assume that’s buying it twice, obviously excluding earnings recaps or anything like that. The rationale here is I’ve moved away from earnings recaps and when I write about something twice, its more akin to doubling down.
  • Competitive strategy series posts are excluded (unless I say the stock looks cheap in the specific post) because the point of those posts is to examine business strategy as opposed to the stocks themselves being cheap
  • Guest posts are excluded so a very timely cruise stock buy in March 2020 is not in the results
  • Other exclusions may apply, such as some macro calls because it is too hard to track. For example, I noted at the end of 2018 that I was doubtful rates would rise meaningfully and bonds make sense if there was a market sell-off (as rates would likely move lower). That was a contrarian and a correct call, but is not included.

Over time, I hope to advance the write-ups I do in many ways. I also want to advance the tracker, but it won’t be in the near term. In the future, I want to show the portfolio. So, for example, future stock posts will say, “ok, I’m going to buy this name I like, so therefore I am selling xyz…”

But that’s for another day.

Head over HERE for the performance tracker. Or click the menu header above at the top of the site and click Performance Tracking.

 

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.