Sorry, what did you say?
“You are a bit late with your forecast, Tacomob. It’s already February!”
Well, dear reader, what’s a year anyway?
It’s merely the orbital period of the Earth moving in its orbit around the Sun. But that does not mean that we have to think in that timeframe all of the time.
Firstly, why would we have to measure our annual portfolio return based on calendar years? I am always a bit puzzled when bloggers like to share their annual portfolio returns. Are we small investors answerable to bosses and shareholders like those poor confined institutional investors out there?
So why can’t we break away from the herd and measure our “yearly performance” based on our birthday date for example?
And secondly, why do we think that measuring our portfolio returns on a yearly basis has any significance when our long-term-investor-time-horizon is 10, 15, or x-years