I discovered an error with the spreadsheet I used to generate my investment returns. It turns out I hadn't adjusted the S&P 500 index price for some of my purchases. The effect was to make the Benchmark column wrong:
Stock Opened Price Closed Price Annualized Benchmark Oracle 6/24/02 8 5/28/03 13.35 67.05% -9.94% Major Automotive 2/28/06 1.75 3/29/06 1.90 144.21% -11.13% Oracle 6/24/02 8 4/4/06 13.84 14.99% 6.80% Canon 12/9/03 45 4/4/06 68.56 19.04% 2.19% Canon 12/1/04 49.66 4/4/06 68.56 26.38% 5.34% Select Comfort 2/9/05 19.95 4/4/06 39.80 80.44% 6.60% Berkshire (B) 1/31/06 2920 4/4/06 3001 8.29% 2.57%
Now I'm 100% both on absolute and relative terms. Obviously this was a pleasant surprize. Even better, I've been tracking my time-weighted internal rate of return and my IRA is earning about 20% annualized. Since I've held a lot of cash earning less than 4% most of that time, I feel pretty confident in my ability to make good investments over time. If anything, I ought to be making more trades.
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