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FuckedUpEdNess!

There, I said it… forgive me but… YAY!!

It’s a word I’ve anxiously saved and hoarded all of last year to make use of, so please excuse my bold application, but at last, its time has come.

And really, using it to describe my own actions (and those of the Man Down South) makes it OK to use, doesn’t it?

I’m writing this week’s post with a slightly rosy hue burning my cheeks (not the ones I’m sitting on!).

I spend a not-inconsiderable amount of time each day, week, and year, examining and studying, then finally purchasing (and selling) tiny amounts of publicly-traded companies in both Canada and the US.

My long-stated goal has been to swing a bat with care and sagacity to bring about an average return of about 15% on my accounts and those I advise on.

Each year (mostly), I happily highlight my investment acumen in the cases where I’ve made some head-swelling choices, and to be fair, grimly excoriate my less well-chosen trades on the markets.

BUT! The big bold F word above tells you which direction my choices have driven this past year… a Thelma and Louise skid off the steep cliffs of investment return. NEGATIVE!

Because I act as a kind of amateur investment advisor to my kids, I’ve already sent them each a letter of (FuckedUpedNess) apology and mea culpa for the bad news I wrought in their accounts that wasn’t so bad until … the final month of the year when the wheels were violently ripped off this market money wagon… CRASH!

To be a little gentle on myself, I know that all North American markets took a big haircut on the year. To be a little less gentle on others, I feel exasperated and irked with the Man Down South.

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But blaming others just isn’t healthy. I won’t go down that road. Please please please help me to not go down that road.

I know from lengthy experience that markets aren’t a solid, joyous ride up the rollercoaster…. on occasion, there is an underwear-staining heart-thumping tear down a steep track that we must expect.

OK… brass tacks … what’s all this FuckedUpedNess fuss about?

The bottom line: the return on my investments for 2018 was a sub-standard -1.76%.  My first down year since 2008. By comparison, the S&P 500 (the broad U.S. measure of markets) dropped 4.4% in 2018 and the TSX Composite fell 8.9%.

I hate it when I see my net worth sink even a little. When you invest on a serious level, net worth has a rough correlation with net self-esteem!

OUCH!

A negative result is different now than before.

I’m finding out in a non-fictional way today that negative returns have a real-life impact on a Retiree’s (there’s that nasty “R” word!) world… the regular bi-weekly paycheque has gone AWOL and is no longer a credit to balance the debits! The teeter-totter has lost one of its players.

But I’ve long known that a job is only one source of income. The American IRS suggests the average millionaire has seven sources of income. We should all strive for multiple streams of $, yes?

OK, enough delay… it’s time to pony up and share my results over the short and longer-terms.

I’m definitely no Warren Buffett when it comes to investing – the multi-billions keep slipping from my hands – but I’ve carried out my role in an OK kind-of-way over time, and more importantly, I love the pursuit, the challenge.

So here are my cumulative annualized returns over the past decade (to shrink my head a tiny bit, I’ve added in year 11 as that was the year of the big 2008 slide… a harrowing -37.1% return):

  • 1 year     -1.8%
  • 3 year     +6.1%
  • 5 year     +6.8%
  • 10 year   +19.7%
  • 11 year   +14.5%

Only over the 10 year period have I attained the pinnacle (15%+ returns) that I’ve been climbing towards. Clearly, my goals have outshot my reality. I’m not giving up!

And for this past year, I’m putting my investing acumen and self-accolades in the FUCKEDUPEDNESS column.

Guess I’ve gotta keep working on my swing (maybe I just haven’t reached my 10,000 hours of mastery yet). I hate those years when I strike out.

I don’t want to have to pull out that F word again next year!light sabre bat.jpg