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...
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