2016 In Review – Portfolio Performance

In a year in which historic political activity prompted calls of armageddon in financial markets,  2016 in review has actually been rather profitable for many investors.  Had you bought a FTSE 100 tracker at the start of the year you’d have likely been very satisfied with returns of around 14% (minus fees).  Indeed, the index closed to an all-time high of 7,142 at years’ end.

With that in mind, I wanted to review my performance in what has been my first full year in investing.  I’m happy to report that, as of close of business for the year, my portfolio is up by 14.5% year to date, and 15.7% since inception.  As you may know, I judge my performance against the FTSE All-Share index, which is up 12% during the same period.  2016 therefore represents the first of hopefully many years in which I have beaten my benchmark.  Feel free to view the portfolio by clicking HERE.

2016 in Review

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CAPE Valuations December 2016

A few months ago I wrote an article updating the cheapest countries by CAPE ratio as listed in Meb Faber’s Global Value.  The article was called Finding Value in a Global Environment, and sought to look at the performance that would have been obtained had one invested in an ETF tracking the markets of each of those ten countries.  As a reminder, the CAPE (Cyclically Adjusted Price-Earnings ratio) was created by Professor Robert Shiller and works by taking the price of a market/stock/sector and dividing it by the average of ten years of earnings, adjusted for inflation.  I highly recommend the work of the aforementioned Faber on the CAPE ratio if you want to find out more (https://mebfaber.com/).

As a strategy I find it extremely interesting that this valuation method can be used as a tool to help ascertain which countries could be determined as “cheap” and “expensive”.  I will therefore be adding an article every three months or so showing the performance of the ten cheapest countries for the previous quarter.  This is more for my records, but if its interesting at all to you, more the better.

CAPE Valuations December 2016

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CAKE: A Valuation of Patisserie Holdings

This week I finally thought it might be useful to take a look at a valuation of an individual company.  One darling of the previous week has been Patisserie Holdings PLC (CAKE), having released impressive preliminary results on the 29th November.  I took a really quick look after seeing it discussed on Twitter and thought it warranted further investigation.

CAKE

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