A short time ago we saw in this blog the 4 advantages of small investors compared to professional managers. In case there are still doubts about the ability that small investors have to beat the market and professional investment funds, this time I am going to show you the profitability that I have had with my investment portfolio during the last 5 years and the place that would occupy within the world of professional management of investment funds.
The profitability of my investment portfolio
The total return on my investment portfolio over the last 5 years has been 146,23%. In the following screenshot my online broker (the bróker naranja de ING) you can see the profitability of the portfolio, so you can see that there is no trap or cardboard:
A return of 146,32% in 5 years is equivalent to a compound annual return of 19,76%. We will then compare this profitability with the profitability obtained in the 23.534 investment funds ofthe secret that there is no secret. If you have perseverance and willpower, the good results will come. The key to my success is the same as the key to the success of Warren Buffett, Peter Lynch, Joel Greenblatt, David Einhorn or Bestinver: the value investing.
Once again, it is shown that followers of value investing, even those who invest only in our free time, are capable of outperforming the market and most investment funds managed by professional investors. It is likely that in the future it will not have such a high return, but I feel capable of continuing to outperform the market and most investment funds.
I hope this example encourages you to dive right into the world of stock investment and value investing. As I always say, it is a long road, it requires a lot of hard work, mastering both theory and practice, but it can be done and it is worth it.