These People Are Truly Awesome!

If you’re a regular reader of this blog, you’ll know that I run an investment club—and we’ve been investing money in the club for over 12 years. 

We had our public moment in the sun, during 2008 when I wrote about the club for MoneySense magazine in a piece titled, How We Beat The Market.

Since 1999, we’ve averaged a compounding rate of return of 7% per year.

We have beaten the S&P 500 index for 9 years in a row, and if our luck holds out, we’ll make it a 10th.

Currently, here’s the tale of the tape from January 1, 2011.

Performance Benchmark: Vanguard 500 Index Fund (VFINX)

01 Jan 11 to 8 Aug 2011 (using prices from market close for 08/26/2011)

 

IRR

Portfolio
Value

Maniacle Members of the Mausoleum

 -9.5%

527,341.02

Vanguard 500 Index Fund (VFINX)

 -11.5%

520,023.74

Since January, 2011, we are down 9.5%, compared to the S&P 500 drop of 11.5%.

We compare to the S&P 500 index on a dollar-weighted basis, using the investment club portfolio tracker at www.bivio.com

But I’m not celebrating our club’s investment returns.

I’m celebrating the folks we have in the investment club.

Here’s the reason:

They get it!!!!!

When markets fall, my club members pour money into our investment club account.  Last week, we purchased Berkshire Hathaway shares, and today, I placed an order for 1000 shares of United States Gypsum.

Our club members have sent me $16,000 in the past week!

During the 2008/2009 financial crisis, they invested more than five times that amount.

If I can brag about anything, it’s this:

My investment club members have embraced the most important investing concept—being greedy when others are fearful and fearful when others are greedy.

Will we beat the stock market index over the lifetime of our club?  The answer to that is almost certainly no.

But we won’t end up as shark bait—and I’m convinced that we’ll easily beat the vast majority of professionally managed money.

 





Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I’m happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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3 Responses

  1. Jean says:

    Great post, Andrew! Your leadership and account management are appreciated.

    Way to go, team! For those of us mainly trying to keep up with our indexed portfolios, it's exciting to hear what others are doing. The important thing is that we're taking action to invest, and we're sticking with it. We certainly do get it.

    Once you begin working with students, Andrew, I'm sure they'll get it, too.

  2. Andrew Hallam says:

    Thanks Jean!

    The team certainly does stick to a disciplined philosophy. And it makes them very easy to work with!

  3. Great stuff Andrew and nice shout-out to your club members.

    I'm learning more and more, it's not always what you do (invest in), it's your attitude and patience with it that wins the race! 😉

    It helps to have a great team, when you have a great leader – just so you know!

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