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My half year preliminary report

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I was very pleased with my portfolio’s first 6 months’ performance this year, while I don’t have exact number here (waiting for Scottrade to create June 2007 statement), my return is about 30%. My biggest winner is Crocs (CROX), which went up more than 100%, Mindray (MR) also helped a lot (went from $23 to $31). Some of the losers include: NINE, GSIT, SBUX (hate to say that because I think it’s a good company). And I made a mistake to let EDU go too early (sold at 37 and 40, it’s more than 50 now). So the No. 1 lesson is: keep the winners, sell the losers, not the other way around.

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How to Measure Performance of Investing ?

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We often heard story like that someone made $5,000 in stocks in one month. Cool. But that does not tell the whole story. Why?

There are a few questions I like to ask:

1) How much did he/she make the month before and after (that particular month)? Did he/she make more money (less money) or lose money in other months. We are looking for consistency here. Also in investing we typically measure performance in longer terms, e.g., by year, at least by quarter or 6 months.

2) More importantly, how much money did he/she started with? Is it $5,000 or $100,000. The return will be 100% or 5%, respectively. Big difference.

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