Hey guys!
The time has come – it’s time to review my Roth IRA portfolio’s performance this year. We came so close to beating the market didn’t we? Let’s digest my results.
Total share price appreciation as of Jan. 5th:
- S&P 500 from January 4th, 2021 – January 5th, 2022: +27.03% ((430.66-339.03) / 339.03) x 100
- My portfolio from January 4th 2021 – January 5th, 2022: +23.28% ((((56,210.80 – 6,000 – 1,339.94) – 39,641.18) / 39,641.18) x 100)
Total return as of Jan. 5th:
- S&P 500: +28.28%
- My Portfolio: +26.03%
The above picture is a reminder that a year is a long time. I was ahead of the market’s overall return by almost 3% after the first month, led the market pretty consistently throughout the year until November, but then ultimately fell behind in late November and finished around 2% short in overall return.
If you want to go over my biggest learnings and portfolio slice performance this year, check out my post a few weeks ago. Spoiler: I invested too much money in individual companies owned by the ARKK fund – which dampened my returns late in the year. This is not an excuse, I’m just doing all my own research this year. I’m sure if ARKK outperformed, I would be talking about how smart I am. 🙂
In my very first blog post over a year ago, I defined criteria that I believed would make my custom portfolio successful. Let’s take a look at how I did (and didn’t) perform against these goals.
Portfolio Goals:
- Beat the annual stock returns of the S&P 500 – Unsuccessful
- My Portfolio Total Return: +26.03%
- S&P 500 Total Return: +28.28%
- Beat the annual dividend return percentage of the S&P 500: Successful
- My Portfolio Annual Dividend Yield Percentage: ~2.75%
- S&P 500 Dividend Percentage: ~1.25%
- Have a positive yield on cost in my investment portfolio: Likely
- This one is tricky to measure. I needed to export a spreadsheet of my portfolio before I rebalanced into my new 2022 portfolio to capture the total number of shares I owned per stock and the cost basis of each of those shares. I played around with M1 Finance and can’t figure out a good way to export a file or capture a portfolio at a date in the past.
- Amateur analysis: I believe this goal was accomplished, because the only stock in my portfolio that cut its dividend during the year was Dominion energy, while many of the stocks in my portfolio raised their dividends. I’ll leave it as “likely” for now.
My biggest goal is the first one. I did not outperform the market in 2021, but I have a new 2022 iteration of my portfolio that I will be revealing soon. Spoilers: I am outperforming the market after week one 🙂
Thanks to all of you for reading. Have a happy financial new year, and may the 2022 gains be with you!
Roth and Roll Finance 