2013 First Quarter Report
Pretty good quarter, in spite of Cyprus. Who would have thought that a speck in the Ocean like Cyprus could cause such world turmoil? But then Iceland did the same a few years ago. Remember the joke: What is the capital of Iceland? Answer – $25.
The Canadian market was up a respectable 3%, but the US markets exceeded 10% and reached record highs. As a result, my portfolio, which includes a mix of both US and Canadian, rose by just over 7% for the first quarter.
I purchased Royal Bank and Fortis during the month of March.
I did a detailed analysis of my current holdings based on time of purchase. My holdings consist of stocks I purchased before the crash in 2008, then purchases of stocks in 2010, 2011 and 2012. Here is a summary of the returns for each of those batches. This analysis is done based on the actual days the stocks have been held.
2008 and prior
Capital Gains = 29% or 4 ¼ % per year plus dividends of 3 ¼% for a total gain of 7 ½ % per year.
Remember – that includes the big crash of 2008 to 2010.
Capital gains = 18% or over 6% per year plus dividends of almost 4% for a total gain of 10% per year.
Capital gains = over 12 ½ % or almost 8% per year plus dividends of over 4% for a total gain of 12 % per year.
These were all made in the latter part of the year, so there is less than a year of data to work with therefore the annualized return of 25% is not worth considering. I will update this number after I have at least a year of data.
My average return in total of the stocks I currently hold is over 10% per year. My actual portfolio return is less than that, as I have often held considerable amounts in cash, so the portfolio return is just over 7% per year.