Gyroscopic Investing

Has your VP outperformed your PP in the last year or two?

I'll lead off...NO. My mining shares have been stinking up the place. Metals going sideways.

If yes, what are you doing and why do you expect it to continue to outperform?

No. 

I'm seriously thinking about turning my VP into a second PP.

VPs teach humility.

foglifter wrote: No. 

I'm seriously thinking about turning my VP into a second PP.

Hi,

what composes your VP?

Regards.

frugal wrote:

foglifter wrote: No. 

I'm seriously thinking about turning my VP into a second PP.

Hi,

what composes your VP?

Regards.

Dividend stock ETFs, total return funds, REITs and a few dividend stocks. Particularly I got hit by Spain's issues as my Telefonica position got down 25% - the position is small but still it affects the overall portfolio performance.

It's very natural for humans to listen to all the sound advice and still be eager to "try" - only after we have failed we get the lesson.

MediumTex wrote: VPs teach humility.

I couldn't have said better!

VP
2010 - 25.97%
2011 -    .59%
2012 -  2.84%
3-yr average: 9.88%

PP
2010 - 13.33%
2011 - 11.79%
2012 -  8.70%
3-yr avgerage: 11.24%

The PP wins again.  My PP has been goosed a little by my good fortune to have the TSP G Fund and some 2000 & 2001 I Bonds as about half of the cash component.  Ten to twelve years ago the limitation on I Bond purchases was much higher. 

HB Reader wrote: VP
2010 - 25.97%
2011 -    .59%
2012 -  2.84%
3-yr average: 9.88%

PP
2010 - 13.33%
2011 - 11.79%
2012 -  8.70%
3-yr avgerage: 11.24%

The PP wins again.  My PP has been goosed a little by my good fortune to have the TSP G Fund and some 2000 & 2001 I Bonds as about half of the cash component.  Ten to twelve years ago the limitation on I Bond purchases was much higher.

Hi,

what composes your VP?

Regards.

frugal wrote:

HB Reader wrote: VP
2010 - 25.97%
2011 -    .59%
2012 -  2.84%
3-yr average: 9.88%

PP
2010 - 13.33%
2011 - 11.79%
2012 -  8.70%
3-yr avgerage: 11.24%

The PP wins again.  My PP has been goosed a little by my good fortune to have the TSP G Fund and some 2000 & 2001 I Bonds as about half of the cash component.  Ten to twelve years ago the limitation on I Bond purchases was much higher.

Hi,

what composes your VP?

Regards.

My VP has varied somewhat (and could change at any time), but essentially:

50-65% - Blue chip U.S. dividend growers: XOM, JNJ, MCD, KO, MMM, etc.  (occaisonal changes - reinvest dividends when prices seemed depressed)
10-15% - PM miners: PMPIX, GDXJ, PXZRF, BGLPF, SIVR, OSKFF, etc.  (speculative picks for a 5-yr or so time frame)
05-10% - Bond funds/ETFs: IVR, ESD, GIM, etc. (many defaults seem unlikely given central bank policies worldwide - reinvest dividends sometimes) 
15-25% - 5 year CD latter and near cash. (who knows what will happen or when?)

Personally, my VP has outperformed the PP in the last couple years, but only because of a couple reasons:

1. It's almost entirely company stock that I can buy at a 15% discount.
2. I also held some Apple that I bought at $250 and sold around $500.

My company stock alone I have been averaging a 35-40% profit simply because of normal stock price appreciation since 2009 combined with the 15% discount.  I hold the shares for at least 1 year for the long term capital gains, then sell and diversify into the PP.

Of course looking at equity performance from 2009-2012 does not exactly give me confidence that my VP will continue to outperform the PP.