Yesterday I posted my 2013 portfolio review and stated that the portfolios I manage had gained 98.13% cumulatively over the last two years.
Last night I received an email saying that I actually didn’t add things correctly since I didn’t discount cash so here are the updated, actual numbers.
- 2012 is still the same 26.20% gain since I was fully invested nearly the entire year.
- 2013 INVESTED portion of the portfolio still gained 98.13% this year.
- 2013 entire portfolio return this year, with cash earning 0, and before taxes was 35.67%.
- That means that the cumulative two-year gain for the entire portfolio was 61.87% (not compounded).
- The cumulative two-year gain for the stock picks that I have bought is 98.13% (not compounded).
Sorry about the numbers I reported yesterday. I didn’t know that technically I was supposed to discount the cash portion of the account if I was going to call it a total portfolio return.