Portfolio Updates: December 2016

I have two investment accounts, one with Interactive Brokers and another with Virtual Brokers. I will discuss the returns of each portfolio separately. 

Interactive Brokers Portfolio

Since Trump won the election, it has been quite a rough ride for my portfolio. I added Gran Colombia Gold (GCM.TO) stock and Fairfax Financial Holdings (FFH.TO) right before the election result, thinking that the gold price will increase and the market will crash if Trump had won as I mentioned in this article. Unfortunately, it was the complete opposite. You can see how much my return dropped since November 2016 (My portfolio return: blue line, S&P 500: green line).

It just reminded me that speculation of market condition is generally a bad idea. You can see that all other stocks, the ones that didn't involve speculation, are doing quite well. The return of Japanese stocks was especially phenomenal at 24.78%. 

Though I failed at speculation/market timing, I'm not too worried about Gran Colombia Gold (GCM.TO) and Fairfax Financial Holdings (FFH.TO) in terms of the long-term performance. I expect the return of GCM to be spectacular as long as the gold price hovers around $1200 per ounce as discussed in this article. The investments made by Fairfax are long-term focus and the company has a great track record of compound annual growth of 20.4% in book value since 1985.

Virtual Brokers Portfolio  

The return of Virtual Brokers Portfolio has been better than the market.

I'm quite confident about the value including Becker Milk, E-L Financial Corp, Torstar Corp, Rocky Mountain Dealership, Noranda Income Fund and Gran Colombia Gold. 

I'm somewhat iffy about Hammond manufacturing co, ltd. Even though the stock is cheap, I haven't done enough research on the stock. 

The rest of the stocks are non-value stocks. I bought them when I first started investing, before I learned value investing. I might get rid of some.

Going into 2017

2017 will be an interesting year. There are many political events in major EU countries including Italy and Germany. Trump will actually start his presidency. US Federal Reserve might keep increasing the interest rate. Let's see how many portfolio will do over the next year.