What caught my attention this week.
hHow often do you review your portfolio, or even calculate your net worth? And how do you do it? Curious minds want to know. By what I mean your partner monevador readers!
The topic came up in a recent comment thread about year-end reviews. We decided that a reader poll might be of interest.
Of course, in theory, I agree with my fellow blogger. Nick Magguilliwho warned this week that most people’s time is better spent working for an income rather than gambling with their investments:
Suppose someone with $10,000 invested spends 10 hours a week researching stocks for the best investments. Let’s also assume that their research is good, and as a result, they can beat the market by 10% per year.
While this is impressive, unfortunately, their 520 hours of work (10 hours per week * 52 weeks per year) only earned them an additional $1,000 (10% alpha * $10,000). This means that our star analyst was researching stocks for less than $2 an hour ($1,000/520 hours).
If the analyst’s ultimate goal was to build wealth, you can see how he would have done much better getting a part-time job instead of analyzing 10-Ks.
Even if we were to increase the size of the analyst’s portfolio to $100,000, their 10% alpha (ie $10,000) is roughly equivalent to what they could have earned driving for Uber in the same amount of time.
guilty as charged Nickat least for the last nine years.
Also, I suspect that ten hours a week spent on investment matters is a gross underestimate for active investors. It certainly is in my case.
On the other hand, it is good to have a hobby, even a passion.
For my part, my interest was what made saving and investing up to 50% of my income more of an exciting prospect than a sacrifice. He was simply buying more firepower to do what he loved, the same way someone else might buy new golf clubs.
On the other hand, I don’t really have any career to speak of. And given my passion, it might well have been better to get a job as a junior analyst while I still could and then work my way up to earn money. (But… with a tie. How horrible!)
Anyway, I can see both sides.
The poll tax
I hope my reflections have not altered the playing field too much. Take surveys based on what you do, not what you think you should be doing!
Below you will find two questions. Select the answer that is closest to your own habits.
Yes, I understand that some answers are not mutually exclusive or that the survey does not reflect your unique and special experience.
Neither is mine. That is the nature of general surveys! We’re just looking for an idea of how monevador readers care about what is theirs, as a whole.
For example, I check my portfolio more than once a day via a spreadsheet in real time, but I also do occasional checks in a text document. Clearly the first one best describes how I control my portfolio, right?
Two questions, no wrong answer
First of all, let’s listen to how often you check your portfolio.
I’m not talking about taking care of administrative matters (for example, an email from the platform) or adding money (automatically or manually), but rather controlling the (hopefully) growing value of your reservation.
Second, the readers and I were curious as to how you do it.
Again, there will be a crossover. For example, I run a massive spreadsheet in real time, but of course sometimes I see items from my portfolio on a platform’s webpage. Who does not? So the spreadsheet answer I would give here.
Thanks in advance! The poll will run through Friday and I will recap the final results next weekend or include them in a future article.
Have a great weekend.
PS The new Netflix documentary Madoff: The Wall Street Monster It is worth buying popcorn in the supermarket. The first episode in particular offers an abridged history of 20th century Wall Street. As for the story, it’s completely incredible. Which is crazy, considering it’s true.
Slow and Steady Passive Portfolio Update: Fourth Quarter 2022 – Monevator
Unlock a cheaper mortgage rate by adjusting your loan-to-value ratio – Monevator
From the Cabinet: How to Stick to Your Savings Goals – Monevator
Note: Some links are Google search results; in PC/desktop view, click to read the article. Try privacy/incognito mode to avoid cookies. Consider subscribing to sites you visit frequently.
The Inventor of the US Yield Curve Recession Signal Thinks It’s Wrong This Time – Bloomberg via YF
Blackrock and M&G Postponement [i.e. effectively block] UK Real Estate Fund Withdrawals – Reuters
UK house prices drop more than £4,100 in a month as cost of living shrinks… – yahoo finance
…while mortgage approvals are at their lowest level since June 2020 [Search result] – FOOT
Thousands of Britons kicked out of the EU since Brexit transition ended guardian
3,275 people filed their taxes on Christmas Day – gov.uk
Historically, 60/40 portfolios have skyrocketed after terrible years [US but relevant] – humble dollar
Products and services
The premium savings rate on instance access vanishes before customers can take advantage of it. Which
TSB and Nationwide, the latest lenders to slash mortgage rates… [Search result] – FOOT
…while the average five-year fixed rate across the market is now down to 5.62% – this is money
Hargreaves Lansdown offers a refund of £100 to £1500 if you transfer your pension to your SIPP. Terms apply – Hargreaves Lansdown
Royal Mail urges people to use or exchange non-barcode stamps before the deadline: guardian
Savers Eye Pension Annuities as Rates Soar [Search result] – FOOT
Open a SIPP with Interactive Investor and pay no SIPP fees for six months. Terms apply – Interactive Inverter
English homes for hybrid work, in pictures – guardian
comment and opinion
Why is it difficult to invest? Young Money
Costs matter – The financial bodyguard
The 16 best countries to retire abroad – thought advisor
How will investors behave in 2022? – behavioral reversal
Five Reasons You’ll Blow Up Your Retirement Plan: kiplinger
Five ideas to improve your finances in 2023 – jason butler
Achieve – indeed
Money and Happiness, with William Green [Podcast] – The investor podcast
Eight tips for finding the right financial adviser: The evidence-based investor
The VC reckoning is drawing near [Search result] – FOOT
Old age and money minispecial
A Mexican wrestler savors retirement at 50 humble dollar
Talking to adult children about money and inheritance – Kindness Financial Planning
Larry Swedroe: The elderly continue to accumulate assets Advisor Perspectives
Looking back at an ‘interesting’ year: Simple life in Somerset
Naughty Corner: Active Shenanigans
End of the era of sub-zero bond yields [Search result] – FOOT
best of The long term vision investing 2022 podcast [Podcast] – Morning Star
Great news! US consumer sentiment is terrible! – Alhambra Investments
New Year Offers – fire v london
Hedge funds have their ‘hedge’ back: it was valid
Inflation prospects in five charts: Morning Star
Dylan Grice: Building resilient portfolios with alternatives [Podcast] – Allocators
UK Stock Pickers Portfolio Reviews
A 2022 portfolio review from a veteran UK small-cap stock picker… – Maynard Paton
…and the same from a long-time UK dividend stock investor: john kingham
An annual review of a UK closed-end fund portfolio: IT investor
How to survive a bad year in the stock market – Richard Bedard
Kindle Book Deals
The Investment Trust Manual 2023 by Jonathan Davis et al – Free on Kindle
Stuffocation: live more with less by James Wallman £0.99 on Kindle
Reality: 10 reasons… why things are better than you think by Hans Rosling £0.99 on Kindle
Money: the true story of an invented thing by Jacob Goldstein £1.19 on Kindle
Dead in the Water: Murder and Fraud in the World’s Most Secretive Industry by Matthew Campbell and Kit Chellel – £1.29 on Kindle
Where have all the A-rated fridges and freezers gone? – Which
Dolphins dying in the Ukrainian war – BBC
Record heat in 2022 in the UK made 160 times more likely by the climate crisis guardian
Seaplanes and other technologies for cleaner shipping. BBC
The glacier at the end of the world he does not stay
out of our rhythm
[US] inequality could have peaked: noahopion
The company removing meetings from their calendars: guardian
How David Beckham made $500 million in MLS: cuddle [h/t Abnormal Returns]
show of joy – barry ritholtz
The world as it is Seth’s Blog
“In the abstract, life is a mixture of chance and choice. Chance can be thought of as the cards you are dealt in life. The choice is how you play them.”
–Edward Thorpe A man for all markets
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