My 2014 objectives are:
Increase portfolio value by 12%
Get down to 210 lbs.
Take at least one vacation in Florida and one to ride my ATV on challenging mountain trails
So, why am I telling you this? Because it's cold and snowy in Ohio, I've got nothing better to do and it amuses me ........ AND MOSTLY, since this board is basically dead, maybe we can get some dialogue going to share our market experience and express to one another where we think good investments may lie in 2014 (outside of SCCO).
To me, setting annual objectives is vital. At the start of each year I set a limited number of objectives and post them at my work station so I HAVE TO VIEW THEM DAILY.
Usually I set one to three annual objectives. One is always financial another is personal and the third (if there is one) is for something else. For 2013 I had only two objectives.
The first was financial and specified how much I wanted my investment portfolio to grow in dollars. I exceeded this objective by 1.4% so I guess I should be happy. Unfortunately, although I exceeded this objective I badly missed market performance …... so, in the final analysis, I have bittersweet feelings.
In 2013 my portfolio grew by 12.29% which represented a six figure gain. My three best performers were FBHS (57.52%), SSW (51.3%) and CSX (49.49%) while my three worst performers were PZG (-51.14%), SCCO (-22.54%) and MSB (-6.38%). These figures are all inclusive net, net (dividends, commissions, trades, etc).
Now ….. here are my excuses for missing market performance. At 71 years old I've “pulled in my horns,” limited trading and moved to a more conservative portfolio. At the end of 2013 I did some tax loss selling to partially offset the capital gain I had to take by moving stocks from an IRA to a taxable account and I gave money to both my 3 year old grandson and my daughter. Additionally, throughout 2013 I sat on better than 10% cash. But, in the final analysis, if the tax loss selling and the give-away had not occurred I would still have fallen short of market performance. In the past 10 years (excluding last year), I've missed beating market (DOW, S&P OR NASDAQ) on maybe three occasions. So, although I met my 2013 financial objective, deep down I feel like a failure.
My second 2013 objective was to get down to 218 lbs (I'm 6'2”). I met this objective and believe it or not, I'm quite proud of this although the net loss was only 10 lbs.