Wednesday, January 02, 2008
As long time readers of this blog will remember my first year of investing in 2006 resulted in a 19.62% return. 2007 was my second full year investing and I am quite pleased that I was able to achieve a return for the year of 29.75%.
While I am obviously pleased with the absolute return, I am obviously satisfied with the relative return when compared to the various indexes, i.e., DOW, S&P, etc. Moreover, I have also achieved my stated goal from a relative point of view by earning a greater return than the risk free rate on what I would earn paying off my mortgage.
Overall my first two years have produced an annualized return of 26.82%. While I hope, and will try, to continue this blistering pace for the next 25 years, my expectation is that it won't. That is because two good years could be entirely the result of good fortune as opposed to any skill on my part. With that said, for those interested, in my next couple of posts I will discuss those things that I believe contributed to my success.