+26.94% (+38.38% including change in currency ratio) – the results of the WSE wallet after half a year of running a public portfolio

summary-chart

At the end of March 2016 I decided to start running the public portfolio of shares on the Warsaw Stock Exchange – please see the link below:

My wallet on the Warsaw Stock Exchange

The reason for investing in Poland is that this stock market is one of the cheapest stock markets in the world – see my thoughts from 7th of July:

Fundamental Valuation Ratios – a focus still on Russia, Poland and China stock markets

The chart below is another reason. Polish stock market seems to have a 10-year real expected return at about 11%, which is slightly less than Russian stock market which is considered to be a quite risky market to invest in.

wykres-poland-vs-rest

This week it has been half a year from the start of publishing the wallet to the subscribers.
The portfolio results should be calculated from 27.03.2016 to 27.09.2016 but because I summarize the results of the portfolio every week, I am going to show the results from its beginning to the 30.09.2016, namely 27 weeks.

The current portfolio contains  10 companies. I acquired the same companies to my real wallet and I have big interest in choosing the best companies.  It depends on my decisions how good the results of the wallet are. Furthermore, I have noticed that since I started publishing the WSE wallet to the subscribers I have been taking  care more about the proper selection. During the time of running this wallet I sold only 2 companies. Small number of transactions saves time of my subscribers and also saves their money spent for transactions costs. I do not suggest copying my wallet. I rather want to encourage my subscribers to look for their own strategy and learn from my choices.

I buy companies on the Polish stock market – Warsaw Stock Exchange. For Polish investors the change in value is +26.94%. In the same time the benchmarks gained/lost:

  • WIG                          -0.69%
  • WIG20                     -10.07%
  • Bank deposit          +1.22%

It constitutes a proof that despite the fact that the situation on the Polish stock market was not favourable, my choice of the companies was really good.

Because among my subscribers there are also foreign investors, the result of the investments for them will be different. In their own currency the result will include change in value of their currency vis-à-vis  Polish currency.  I live and work in the UK so I am going to show the results for British investors. During the last half a year I reaped profit from drop of British £ in relation to Polish zloty. It means that it was a good decision to keep money outside the UK.

The ratios of currencies GBP/PLN are taken from the website:
http://stooq.pl/q/?s=gbppln

For me and other investors investing their £ on the Warsaw Stock Exchange, the WSE wallet gained +38.38%.

Benchmarks for British investors in the same time:

  • FTSE 100                                                                                 +13.31%
  • FTSE 250                                                                                  -0.60%
  • Bank deposit                                                                          +1.22%
  • My investment wallet in £ on my ISA account  +34.60% – see a link:
    +48.50% in half a year – a summary of my investment wallet in £ on my ISA account

It was a free wallet available to the readers of the blog. It shows my investments on the ISA account. As we see, the WSE wallet outperformed the UK stock market +38.38% vs. +13.31% for FTSE 100 and -0.60% for FTSE 250. The results of the WSE wallet are also better than the results of my investments on the ISA account. However, I like to diversify my investments. Through the funds I acquired to my ISA account I have got exposure to the Russia, China and commodity markets.

I am glad because of the results of my investments in this period. I wish myself and my readers the same or better results in the future.

If you want to be informed about the investment portfolio composition and any changes in it – read How to subscribe?

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