Stock Market and Real Estate Return in 2016: A Comparison


#123

Haha… just the other day you were meriting the usefulness of diversification. Now you are a steward of concentration. How the table has turned…


#124

Obviously you gents are not using enough leverage. My stocks equity now is 2.3x the size end of 2016. A gain of 130% in 5 months.

And I thought I was Mr. Safety? :smile: Turns out we don’t practice what we preach.


#125

Um… it’s easy to grow from $1 to $100. That’s a 10000% gain…


#126

If you are talking about stock market it’s pretty darn hard. Commissions will eat you alive. :slight_smile:


#127

Just to make you happy, you’re right. Have a high risk account giving 200% 1-year gain, from $13k to $39k over one year.
Long calls can yield 1000% return in this type of market, too busy to trade calls nowadays, so couldn’t enjoy such gain. Above account is trading OTC stocks :sweat:, still risky but don’t have expiry headache.

wuqijun is put on a defensive and red alert by manch that we might not want to listen to him :grin:


#128

Haha. I just think I got a lucky break that’s very unlikely to repeat. In all of 2016 my gain was only 10%, and I held pretty much the same portfolio as now.


#129

I am not accounting real estate gains or real estate growth as it is too complex to calculate.

In my taxable account, the YTD gain is 34.92% as of date
In my retirement account, the YTD gain is 19.09% as of date.

If you need to compare how other redditians responded, here you go.

I do not pay any commissions right from 2015 onwards. Robinhood and Merrill edge (min 25k investment) provides commission free trades.


#130

wuqijun’s stock performance is pathetic :stuck_out_tongue_winking_eye:


#131

End date is when? Ytd is 7.91%


#132

His gain 18.9% is too good as I see similar returns in my retirement account. My retirement account has 5 times bigger than my taxable account. As the amount goes higher, returns may be difficult to get. The more investment amount we have, we need to do more research/analysis to make sure we do not face big failure.


#133

Not always true. My stock return is dragged down by the much smaller 401K account, taxable return 4 times that of 401k.


#134

For me it’s the margin interests that hurt. Didn’t pay attention to it until this year preparing for 2016 tax. I was like holy cow! Definitely a shock I was paying that much. Soon afterward I moved everything to Interactive Brokers. My interest rate dropped from more than 7% to 1.6%.

I thought all stock brokerages charged the same interests. Big mistake! :cry:

Another cool thing about IB is you can trade all the major markets in the world. I bought quite a bit of Tencent in the Hong Kong market.


#135

Is IB still charging 1.6% right now?


#136

IB’s pricing chart:

https://www.interactivebrokers.com/en/index.php?f=1595

They have different tiers. The more you borrow the lower the rate. 3M and up is only 1.16%. So maybe I should borrow money to buy some properties…


#137

My taxable account is 20x bigger than my retirement account. So I think that means I worked the least. Hanera is slightly less lazy and Jil is the most industrious.


#138

So manch, how is it that you got a 150% gain in one quarter? Did you invest in some stock that went up 150% in 3 months?


#139

No. My leverage was more than 3x. And many big name tech stocks were up more than 50% in the last couple months.


#140

Ending April 30th.


#141

Actually, I’m happy seeing that my stock portfolio outperformed the S&P 3x in this quarter. My intention is just to consistently beat the index. I’ve been tracking my portfolio since 2007. Here are the numbers:

S&P 500: 61% increase (excl. dividends)
NASDAQ: 140%
My portfolio: 167%


#142

How do you account for real estate gain? Does 9% mean that the total value of your houses up 9% in one quarter? But if your leverage was 3 times, your effective gain on equity should be 27% instead. In that case, your RE still beats the stocks