Wednesday, September 23, 2015

Starting Out Investing 2

This is second part of my entry on Starting Out Investing. This first part of the entry is here.

The next question to answer is how well did I do with my investing with borrowed money? Since 2003, I have taken out $53,850.93 from my line of credit. I have paid some $4,518.34 so far in interest and my current debt is at $9,449.27 and I have paid to my line of credit $48,920.00 to date. So the stocks I have bought cost $53,850.93 plus the interest to date of $4,518.34 or a total of $58,369.27.

As of the 28 August 2015, the stocks I bought this way were worth $91,209.09 and with the current dividends I have a dividend yield of 4.04%. As of this date my compounded capital gains is at 7.92%. If you include interest paid my compounded capital gains are 6.80%. This is not my total return as I have not included dividend income.

Current the stock market is going down. At the end of 2014 the stocks I bought were worth $100,439.39 and I had paid $50,870.94 for the stocks. At the end of 2013 the stocks I bought were worth $87,114.29 and I had paid $46,979.95 for the stocks. At the end of 2012 the stocks I bought were worth $86,900.00 and I had paid $39,975.96.

What I have done above matches what I did in my current portfolio. I started in 1975 and had invested $52,779.49 by 1985 and my portfolio had a value of $97,304.66.

See the full spreadsheet here. Please note that this mini portfolio is not a balanced one. I was buying more stocks for my trading account and I often, but not always, bought more stock of what I already owned.

On my other blog I am today writing about Smart REIT (TSX-SRU.UN, OTC-CWYUF) ... continue...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.

No comments:

Post a Comment