Second Quarter 2009 investment results

[FUEGO]

Is anyone else pleasantly surprised by their quarterly investment performance? How did you folks do in the second quarter of 2009? What is your asset allocation currently?

For reference, the Vanguard S&P 500 Index fund is up 16.0% for the quarter. the VG Total Market Index fund is up 16.9%. The VG Total International Index fund is up 27.3%. The VG Total Bond Market Index is up 1.7%.

I'll be the first to share. My total portfolio is up 25.9% for the quarter. This is with a portfolio that is virtually 100% equities, equally split between US and International, with a tilt towards small and value, plus some REITs.

 

[Notmuchlonger]

My 100% equities account is similar to yours. It was up 22.9%. Im basically indifferent. Specially after the 1st quarter slaughter and last year.

 

[FUEGO]

My 100% equities account is similar to yours. It was up 22.9%. Im basically indifferent. Specially after the 1st quarter slaughter and last year.

Let's not talk about 2008 and 1Q 2009. Try to keep it a positive thread...

 

[Notmuchlonger]

Let's not talk about 2008 and 1Q 2009. Try to keep it a positive thread...

Right! My bad.

We kicked butt! High fives all around whoo whoo!

 

[FUEGO]

Right! My bad.

We kicked butt! High fives all around whoo whoo!

Heck yeah! Woo hoo! Unless you are someone who got scared around March and lowered your equities allocation.

 

[ziggy29]

Heck yeah! Woo hoo! Unless you are someone who got scared around March and lowered your equities allocation.

Up until early March, the market took care of lowering the equities allocation on its own...

 

[FUEGO]

Up until early March, the market took care of lowering the equities allocation on its own...

That's funny, my equities allocation stayed at 100% the whole way down.

 

[DangerMouse]

Looking at my Vanguard investments, profits I have made this year have wiped out my losses going back to October 2008. However, I still have losses from June thru to September to offset before I get back to a break even position.

 

[HFWR]

Dang tables...

Current allocation:

Asset|%|
cash|9.26%
bonds|36.25%
stocks|42.04%
re|7.51%
comm|4.95%

Quarterly results:

Period|%
1Q08|1.17%
2Q08|-0.68%
3Q08|-12.28%
4Q08|-14.28%
1Q09|-4.46%
2Q09|13.16%

 

[Midpack]

The good news: We're up 13.0% vs 1st Qtr!
The bad news: We're still down 15.3% from our peak net worth 7 quarters ago.

But I haven't lost a minute of sleep yet, adjusted AA today putting more cash to work, all in good time...

 

[Notmuchlonger]

That's funny, my equities allocation stayed at 100% the whole way down.

Me too. Thats why we aren't talking about the year that must not be named.

 

[FUEGO]

The good news: We're up 13.0% vs 1st Qtr!
The bad news: We're still down 15.3% from our peak net worth 7 quarters ago.

This quarter marked a new high for my net worth and a new low for my liabilities (since I started tracking in 2004 after graduating college). Things are looking good...

 

[FIREd]

Up 15.5% for the quarter. AA is about 55/45. Net worth and portfolios at all time highs.

 

[ziggy29]

It's nice to see a lot of green numbers for a change.

 

[freebird5825]

Jan 09 40/60 AA
Jun 09 45/55 AA, YTD +7.5%

 

[Achiever51]

Looking at my Vanguard investments, profits I have made this year have wiped out my losses going back to October 2008. However, I still have losses from June thru to September to offset before I get back to a break even position.

Same here.
Current AA is 64/36

 

[audreyh1]

Retirement Performance (ROI) of retirement portfolio (rebalanced on Jan 15 2009 to 55% stocks, 45% bonds+cash) —

Q2 2009: +15.7%
1st half 2009 (Q1 and Q2): +8.43%

Audrey

 

[dixonge]

quick question - are any of you still contributing to your portfolios, and if so how are you accounting for that in determining your ROI?

 

[FUEGO]

quick question - are any of you still contributing to your portfolios, and if so how are you accounting for that in determining your ROI?

I'm still contributing. I use the Beardstown methodology.

Actually, I use this equation: [ (end val - contribs) / begin val ] - 1

Not exact, but close enough for internet forum browsing. Accurate within a few tenths of a percent on average since my intraquarter contibutions are a rather small percentage of the total portfolio value.

 

[dixonge]

So theoretically if I began this quarter with 18, contributed an additional 16, and ended the quarter with 40, then ( (40-16) / 18) -1 = 33% ROI ?

 

[ziggy29]

So theoretically if I began this quarter with 18, contributed an additional 16, and ended the quarter with 40, then ( (40-16) / 18) -1 = 33% ROI ?

I wouldn't say the ROI is 33%, because it's not. Some of that is return on newly invested capital rather than the return on just the initial 18. I would say instead that my account balance is 33% higher than at the start of the quarter.

 

[FUEGO]

So theoretically if I began this quarter with 18, contributed an additional 16, and ended the quarter with 40, then ( (40-16) / 18) -1 = 33% ROI ?

Not really. The equation I used is simple and it works as a close approximation for ROI for me because my contributions during the quarter were under 5% of my portfolio value. In your case, your contributions are almost as large as your starting portfolio value, so you can't use the formula I posted above. To get an exact ROI or internal rate of return, it is probably best to use a spreadsheet that tracks the exact amounts contributed and the dates of those contributions.

My equation works better as the ratio of the contributions relative to the portfolio value approaches zero (sort of like the time steps in a limit function approaching zero that makes calculus work).

 

[dixonge]

Not really. The equation I used is simple and it works as a close approximation for ROI for me because my contributions during the quarter were under 5% of my portfolio value. In your case, your contributions are almost as large as your starting portfolio value, so you can't use the formula I posted above. To get an exact ROI or internal rate of return, it is probably best to use a spreadsheet that tracks the exact amounts contributed and the dates of those contributions.

My equation works better as the ratio of the contributions relative to the portfolio value approaches zero (sort of like the time steps in a limit function approaching zero that makes calculus work).

That's kinda what I thought. My gain over deposited funds is 22% or so starting in last November. But it does not take into account blow-by-blow gains per deposit. I generally make 1-2 deposits per month, but quite a few short-term trades. I always seem to make things more complicated.

 

[FUEGO]

That's kinda what I thought. My gain over deposited funds is 22% or so starting in last November. But it does not take into account blow-by-blow gains per deposit. I generally make 1-2 deposits per month, but quite a few short-term trades. I always seem to make things more complicated.

I think "complicated" is the way the typical person's investments are in general. We have twice monthly contributions to DW and my 401k (into 2-3 funds in each), plus twice monthly contributions to IRA's or taxable accounts, plus twice monthly contributions to an HSA investment account. That's thirty minimum "investments" per month, ignoring any additional shifting of assets or rebalancing or one time investments or reinvested divs or CG's. Hence why I use my formula to get a "good enough" number!

For me it is roughly I start with say 100 and add 5 more into the portfolio during the quarter. So returns on that contribution are generally relatively small as a portion the whole portfolio.

 

[Free To Canoe]

Up 15% YTD.

95% Equities