Monday, January 17, 2022

2021 Portfolio Review

In 2021 my main brokerage account had a total return of 25.68% (23.55% capital gain, 2.13% income).  As usual I will compare to VOO, Vanguard's S&P 500 index ETF, which returned 28.60% (27.02% capital gain, 1.58% income).  So I lagged the market by 2.92%.  This is explained by my not being fully invested, a drag on performance in an up market.  

During the year IBM spun off KD.  I counted the value of the KD shares and the cash I received for a fractional share as part of the IBM capital return.  Other than that I made no buys or sells during the year making computations simple.  Since this is intended to be a before tax accounting I added back some foreign tax withheld to income.

At the start of 2021 my allocations were VOO 49.94%, other ETFs 10.34%, individual stocks 28.07% and cash 11.64%.  Cash returned .01% lagging VOO by 28.59% for 3.32% of overall underperformance.  My stocks returned 28.39% (24.92% capital gain, 3.47% income) lagging VOO by .21% for .05% of overall underperformance.  And my ETFs other than VOO returned 33.14% (29.56% capital gain, 3.58% income) outperforming VOO by 4.54% for .46% of overall outperformance.  This adds up to 2.91% of underperformance in good agreement with the actual 2.92%. 

2021 was a pretty good year for stocks.  My worst stock (not counting KD) in this account was INTL which still returned 6.16%.  And my other brokerage account was up 24.34%.

Last week I sold WBK (ADRs for an Australian bank).  It has done poorly and the ADR agreement was going to expire at the end of January.  So the sensible choice was to take my tax loss and not get stuck with the actual Australian shares which I expect could be problematic.  I also bought some DGX (Quest Diagnostics).  My medical insurer uses them for tests, they seem reasonably competent and I like to buy stock in companies that I have had positive (or at least neutral) customer experiences with.

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