TogaPF 2008 Portfolio Performance

Time to assess the damage from 2008. The TogaPF portfolio launched on August 4, 2008 with $48,897 in existing holdings. An additional $35,500 was added at various points since launch. At year end (12/31/08):

• Total contributions: $84,397
  
• TogaPF portfolio: $79,063 (-20% IRR)
  
• S&P 500 benchmark: $71,217 (-45% IRR)
  
• Relative performance to S&P 500: +$7,800
  

Returns are measured based on the timing of cash flows into and out of the portfolio. The specific winning and losing trades ultimately sum up to what can be cashed out of the portfolio. The S&P 500 benchmark is the return that would have been received had the cash inflows been invested in the S&P 500 instead.

Realistically, I should include an estimate for liquidation cost that would be incurred in converting the portfolio to cash, but I'm ignoring that for now. I also haven't made any adjustment for dividends paid out by the S&P 500.

Clearly, my timing in starting TogaPF wasn't all that great. Although the portfolio did better than the S&P 500 benchmark, it's not that thrilling to be losing money.

One item that jumped out at me was $456.50 spent on commissions, not including the management costs embedded within ETFs. I expect that number to come down. $100 was spent due to establishing the TogaPF portfolio. Another $100 was spent on options trades, which I was still experimenting with. Overall, I'd like to keep transaction costs under 1% of assets per year.

Since only about 5 months have passed, these returns should be taken with a grain of salt. The real fun begins this year.

Revamped Portfolio

Thanks to EditGrid, the TogaPF portfolio is now pulling in up-to-date stock quote information from Yahoo! Finance and updating the portfolio valuation. The embedded spreadsheet includes the up-to-date portfolio, returns calculations, as well as a list of all past trades.