When Warren Buffett, the investor I’ve learned from the most, introduced the rules to his investment partnership, Buffett Associates, Ltd., in 1956, he told his investors that they should not measure his performance over the short term. He could not control how his investments were doing day by day, month by month, or even year by year. It would be better if the investors measured his performance over three years. Five years would be even better.
I’ve not shared the following with my readers earlier, but I thought I’d share with you how the total development of my stock market investments is doing. Not just The Philosophers’ Legacy portfolio, which is a group of stocks that I’ve picked carefully on certain investment criteria. The total performance includes some investments where you can add a lot more in my favorite company, Berkshire Hathaway, as well as two other companies that I thought would be more speculative. Turns out, the competitive advantage of the holding that I’ve excluded in The Philosophers’ Legacy portfolio is quite strong. But it’s in a type of business that I’d imagine Berkshire would not be investing in. Nevertheless, it’s a strong franchise.
I’ll be sharing with you what these holdings are eventually.
The reason I’ve been less active here on this blog is that I’m focusing most of my time on another one. And I’ll also share that site with you later, when we’ve stopped being anonymous there.
My total returns over the past five years measured in NOK are as follows:
Using the CAGR calculator that I’ve written about here, you can calculate that the total compounded annual growth rate of my investments are now 24.4%.
I’m pretty happy about the development if I can continue do perform as high in the next five years. Not to mention the next few decades.
I’m also pretty happy about that the majority of the holdings in my investments are positions where I think I will lose the least. My largest holdings are the safest holdings I have found. One exception is the stock that I’ve excluded from The Philosophers’ Legacy. That stock may lose its market cap on the short term, but it is building a lot of value over the long term.
In other words, if I don’t look at the stock prices and the movement of the prices that together form the development of my total portfolio, I rest assured that the earnings and value of the holdings will keep increasing as a group.
Do you want to learn how to do it on your own?
If you can get the same returns as I have above, you can triple your money invested every five years.
I’ve put together a web platform for you where you can learn how I think and go about investing. The theme of the site is to become a better investor. There’s a lot of content for you to browse for free, and you can also get access to short courses and content where I take you through the most important things to know, if you want to have a chance of beating the market.
I’ll share it with you here probably during the next few months.
Until then, stay pragmatic!