Beating the S&P 500

I know, I know… I have left this blog to gather some dust, because much of my ‘spare’ time has been focused on preparing for my CFA Level I exam, which is coming up at the end of the month. But today, a milestone finally happened which is worth putting here for the record.

For the first time since I started investing in 2016, my portfolio time-weighted returns (TWR) finally managed to outperform S&P 500. I had briefly discussed why I used that as a measure previously. This performance is largely attributable to the recent bull runs on both the local and US fronts but I must admit that I have been rather fortunate.

Seeing the red line jump above the orange one for the first time!

I haven’t made many transactions in recent months either. The only notable buy I had was iFast, which was one of the businesses that the monthly gatherings held by I-Min were discussing. Essentially, as I had earlier quipped to my fellow participant, I have made back the course fees and quite a bit more. After studying its fundamentals, I figured that it was a good buy and went in some time in October. And then the MAS’ announcement on new digital banks came, and iFast was unexpectedly not in the list, and so its share price plunged. I immediately bought at the dip because we knew that the announcement did not change the company fundamentally. At the same time, my long-held investment in Singtel finally saw some improvements too.

I don’t know when my luck will run out. But this is one signal that I am doing certain things right. That said, I should end by reminding myself not to be overly cocky, because if there is anything the CFA content has taught me, it is impossible to algorithmically beat the market.

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