Are we having a BS session here, so here is my BS for your entertainment. I love reading this thread as it keeps me informed about the world of energy.
My investment story placed here for your entertainment – not bragging rights. I am 100% in energy stocks, and they are serving me well.
I have since beginning of 1990 “played” with the same money – no addition or subtraction – so I know how well or poorly I am doing. I placed a small fortune in the market at the beginning of 1990 and one year later it was down 50% (Tucson Electric). Picking up the pieces from that experience, I assured myself that I was just as smart as everybody else. So I had to regain my losses and start making some gains! So I played the tech stocks, and eventually settled on Intel, Microsoft and Cisco. Played with full margin and had at the start of 2000, before the tech bubble bust, a 10 year run with an average annual compounded return of 59%.
Well, we know what happened. When I cleared out all my tech stock in the early part of 2003, I was only able to claim a 13 year run with an average annual compounded return of 11% -- a huge drop. ( I only had 2% left of the huge amount that I had amassed by year 2000). I must have a high stock market pain tolerance as I only remember loosing sleep one night.
Here is how the energy portfolio for 2003 thru 2006 (4 years) have treated me. Being heavy in CanRoys for income and appreciation, I had a 4 year run with an average annual compounded return of 80% up until the Halloween massacre took place. At that point my portfolio value dropped 50%. ( With the large margin that I love to play with, a huge amount of selling had to take place at that time -- yes, I am a gambler and loving it!).
The dust have settled and at the end of 2006, I have a 4 year energy stock run with an average annual compounded return of 51%. (Would have been 80% if not for the Halloween massacre).
The final result is what matters – from 1990 through 2006 – 17 years. Plugging in the portfolio value at the starting and ending points (on my 33 years old HP business pocket calculator) I get: A 17 year run with an average annual compounded return of 20%. So despite my huge drop in 2000, 01 and 02, I am in here kicking – trying to reclaim past investment portfolio heights! Energy is still King in my book!
Sorry for the long confession. If you think that I was full of BS feel free to say so. You probably think that I should attend Gamblers Anonymous…carlmehr |
