Each quarter, we’d like to give an overall summary of our investment results…it forces us to confront the good and the bad. The results will show performance based on the end of that quarter for the trailing twelve months. Below are our results for the fourth quarter of 2017. If you want to see more of these reports, click here.
2017 Q4 Investments Summary
|Period||Starting Amount||Investment Deposits / Returns||ROI TTM||% Overall Change||Total Investment|
|2017 Q2||$47,739.09||$25,147.94||18.26%** (previously 15.35%)||52.68%||$72,887.03|
|2017 Q3||$50,517.13||$25,608.47||15.55%** (previously 13.95%)||50.69%||$76,125.60|
Two major things changed to the chart this quarter. First, we went back and collected the data for the first quarter of 2017 (marked with *). It is nice to see the whole year’s progress.
Second, I changed the formula for how the ROI is calculated (marked with **). Previously, I took the investment returns for the previous twelve months and divided them by the total amount invested. This is only accurate if all the additional investment money was deposited at the first of the year. So instead, I now use the XIRR() function that Microsoft Excel (or Google Sheets) provides to get your true annualized returns based on how long each chunk of money has been invested.
The net effect is that our ROI jumped up a couple of percentage points because it was no longer being punished by later investments.
This quarter we were really able to make some progress. In those three months, we managed to max out our remaining Roth IRA contributions ($8,250)! We’re pretty excited about that, because we’ve now been able to set up an automatic payment that will spread it out over the entire year making it a lot easier to handle.
Our ROI also went up quite a bit from last quarter due to the positive moves in the stock market recently. We’re certainly not going to complain if we can get an 18% return on our money.
Growth overall was just shy of 60%! As the account value continues to increase, this will get harder and harder to accomplish, but we’ll keep working on keeping this number around 50% or so for the time being.
Key Investments During the Period
During this last quarter, we made two significant transactions. First, we took the Junk Bond interest payment that we received last quarter, and we invested it in QCOM. So far that has turned out great. We bought it at a little over $50 a share. Only about a week later, AVGO offered to buy QCOM for $70 a share. Since then it has been hovering at around $68 as the two companies continue to negotiate back and forth.
Second, we decided to sell some FB because it had had a good run up in the recent months. We used the proceeds to purchase some additional shares of CCL. So far both companies have continued to run, but we like that we’re now a little bit more diversified.
Currently, our five largest stock holdings by dollar amount listed as SYMBOL (share count) are: NRZ (525), FB (45), CCL(101), KR(200), and HBI (225). This section has actually shrunk in value over the last year as we’ve actively worked to diversify.
Of the stocks we’ve held since last quarter, KR was the biggest winner (coming back from the Amazon threat), and LC was our biggest loser (missed on earnings, but still turned a profit).
We are withholding 3% in our 401(k). Because we don’t get any matching from my employer, we prioritize the Roth IRAs over investing in the 401(k) at this point. We plan on increasing this withholding as our budget permits or when/if we receive any raises.
We hope this summary of our investment activities has been useful and informative. Now that you all know what we’re up to, what types of investments are you looking at?
If you want to know more, please comment below.