Originally Posted by
mispoken
Trip7 , can you please tell us what your annualized rate of return has been for the last 5 years, adjusted for cash flows in and out (XIRR)? What about 10 years? Your posts are very consistent regarding valuation and I’m curious to know how your methods have performed.
For me, plain old long term, buy, hold, sit on my hands of “nosebleed valuation, bubble stocks” has been 30% annualized which is about 20% above the S&P for the same time period. I do expect that to tick down around 1% or so this quarter.
I just started value investing last year. Before that I was soley in Index funds and Real Estate with 3% of my money in a "Sandbox" for playing with individual stocks. After extensive research on stocks I jumped into Individual stocks last years and with admitly fortune timing as the Market collapsed and offered me cashflowing businesses at low prices. In 2020 I returned 60%
I have no doubt you did 30% annualized with growth stocks. If you believe that will continue for the next 10 years at current nosebleed valuations good luck. Unless the majority of your portfolio is reasonably valued growth stocks like Google, Facebook and Microsoft history has shown those type of runs that are disconnected from fundamentals end very badly. Time will tell.
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