A tradition unlike any other...
2020 was the best year of my 20+ year investing career. My portfolio outperformed the S&P 500 by +104.8%, gaining 122.5% vs. 18.4%. These returns pushed my net worth to all-time highs, and also expanded my portfolio's annualized returns outperformance vs. the S&P 500 from +0.15% at the end of 2019 (3.42% vs. 3.27%) to +3.35% at the end of 2020 (8.62% vs. 5.27%).
We're going to keep 2021 just like 2020, and continue riding the winners while trending towards an eventual 50/50 stock/income portfolio.
And now, let's look at all the stocks I've held going into this year, from worst to best - based solely on 2020's performance, while mostly ignoring any intra-year volatility:
iShares Core U.S. Aggregate Bond ETF (AGG)
Bought: May @ $116.60, May @ $117.46, Aug @ $119.27, Sep @ $118.21, Sep @ $118.35, Oct @ $117.54, Nov @ $118.34
Year-closing price: $118.19 (1%)
Income, part one.
Global X U.S. Preferred ETF (PFFD)
Bought: Jul @ 23.53$, Aug @ $24.69, Sep @ $24.98, Sep @ $24.70, Sep @ $24.68, Sep @ $24.79, Oct @ $24.71, Nov @ $25.40
Year-closing price: $25.80 (10%)
Income, part two.
Xtrackers USD High Yield Corporate Bond ETF (HYLB)
Bought: May @ $45.34, May @ $46.91, Aug @ $48.66, Sep @ $48.66, Sep @ $48.44, Sep @ $47.85, Oct @ $47.93, Nov @ $49.47
Year-closing price: $50.09 (10%)
Income, part three.
Invesco NASDAQ 100 ETF (QQQM)
Bought: Oct @ $116.44, Oct @ $113.10, Nov @ $122.31
Year-closing price: $128.97 (11%)
Just like QQQ, but with a lower expense ratio.
iShares Broad USD High Yield Corporate Bond ETF (USHY)
Bought: May @ $36.62, May @ $38.05, Aug @ $39.80, Sep @ $39.89, Sep @ $39.63, Sep @ $39.25, Oct @ $39.36, Nov @ $40.67
Year-closing price: $41.26 (13%)
Income, part four.
Visa (V)
Year-opening price: $187.90
Year-closing price: $218.73 (16%)
Increased competition vs. rivals PayPal and Square.
Invesco NASDAQ Next Gen 100 ETF (QQQJ)
Bought: Oct @ $26.30, Oct @ $25.23, Nov @ $28.91
Year-closing price: $30.87 (17%)
It's what one might wish the Russell 2000 to be, instead of the perpetual underperformer that it is.
UnitedHealth Group (UNH)
Year-opening price: $293.98
Year-closing price: $350.68 (19%)
Monster revenues, cash flows, dividend. Expanded Medicare a concern.
Costco Wholesale (COST)
Year-opening price: $293.92
Year-closing price: $376.78 (28%)
The finest (brick and mortar) retailer in the world.
Alphabet (GOOGL)
Year-opening price: $1339.39
Year-closing price: $1752.64 (31%)
Continues to underperform cloud rivals AMZN and MSFT.
Facebook (FB)
Year-opening price: $205.25
Year-closing price: $273.16 (33%)
Cash cow facing increased regulatory risks.
Intuitive Surgical (ISRG)
Year-opening price: $591.15
Year-closing price: $818.10 (38%)
A company without peers.
Microsoft (MSFT)
Year-opening price: $157.70
Bought more: Mar @ $165.00, May @ $175.75, Jun @ $182.29
Year-closing price: $222.42 (41%)
The Satya Nadella winning streak continues. The best proxy for dual trends of work-from-home and software eating the world.
Adobe (ADBE)
Year-opening price: $329.81
Year-closing price: $500.12 (52%)
Has been on an incredible 8-year run of growth and outperformance.
Autodesk (ADSK)
Year-opening price: $183.46
Year-closing price: $305.34 (66%)
Broke out in 2016, and hasn't looked back.
Amazon (AMZN)
Year-opening price: $1847.84
Bought more: Jan @ $1865.01, Feb @ $2039.39, Apr @ $1929.09
Year-closing price: $3256.93 (76%)
The most indispensable company in the world. Inexplicably, has remaining upside of 5% and 27% vs. market caps of peers MSFT and AAPL.
