αc Compound Portfolio Comb

A buy-and-hold portfolio consisting of a number of stable companies with high long-term growth.
31 December 2008  –  29 July 2021
Compare with
S&P 500 (US Large Cap) (SP500.X)

Performance

Annualized Return
36.22%
αc Compound Portfolio Comb
15.66%
S&P 500 (US Large Cap)
Sharpe Ratio
1.73
αc Compound Portfolio Comb
0.9
S&P 500 (US Large Cap)
Maximum Drawdown
-28.53%
αc Compound Portfolio Comb
-33.7%
S&P 500 (US Large Cap)

Metrics

Metric αc Compound Portfolio Comb S&P 500 (US Large Cap)
Initial Balance $10,000 $10,000
Final Balance $489,070 $62,407
Returns
Month-To-Date 3.87% 2.94%
Year-To-Date 11.43% 18.25%
3M 5.27% 5.54%
6M 10.05% 15.19%
Annual Return (1Y) 26.63% 38.8%
Annual Return (3Y) 35.81% 18.13%
Annual Return (5Y) 39.92% 17.33%
Annual Return (10Y) 35.1% 15.16%
Annual Return (All) 36.22% 15.66%
Enh Ann Return 33.58% 14.63%
Best Year 68.62% 32.31%
Worst Year 0% -4.56%
Risk
Annual Volatility 18.89% 18.02%
Max Drawdown -28.53% -33.7%
Sharpe Ratio 1.73 0.9
Sortino Ratio 2.52 1.26
Enhanced Sortino 2.85 1.64

  • Initial balance: The amount of starting capital used to invest in the asset or portfolio. In this case, we're starting with a $10,000 investment on December 2008.
  • Final balance: The amount of capital we've accrued over time as of July 2021.
  • Annual return: Also known as annualized return, or CAGR (Compound Annual Growth Rate), measures how much an investment has increased on average each year, during a specific time period. The time period in this case is approximately 13 year(s). Even a small difference in return can have a big impact on the final balance over a long period of time.
  • Annual volatility: Basically indicates how much, in percentage points, the investment can deviate from its annual return, under most circumstances. An investment with an annual return of 5% and an annual volatility of 10% would indicate returns from approximately -5% to 15% most of the time. A lower volatility is usually preferred to ensure more steady returns over time.
  • Best year: The best performance attained over its lifetime in a given year.
  • Worst year: The worst performance undergone over its lifetime in a given year.
  • Max drawdown: The largest percentage drop from a peak to a trough of an asset or portfolio, before a new peak is attained. Maximum drawdown is an indicator of downside risk over a specified time period.
  • Sharpe Ratio: The Sharpe ratio measures the performance of an investment compared to a risk-free asset, after adjusting for its risk. A Sharpe Ratio above 1 is considered good.
  • Sortino Ratio: The Sortino Ratio is a variation of the Sharpe ratio that only penalizes the investment for negative volatility/outcomes, and not for positive volatility. A Sortino Ratio above 1 is considered good.

Chart

Table

Year αc Compound Portfolio Comb S&P 500 (US Large Cap) Won
2008 0% 0%  =
2009 57.54% 26.37%
2010 32.43% 15.06%
2011 13.35% 1.89%
2012 38.89% 15.99%
2013 68.62% 32.31%
2014 16.66% 13.46%
2015 26.94% 1.25%
2016 24.57% 12%
2017 40.97% 21.7%
2018 16.22% -4.56%
2019 58.1% 31.22%
2020 65.86% 18.37%
2021 11.43% 18.25%

αc Compound Portfolio Comb had 13 positive years and 0 negative years. That's a positive ratio of 100%.

S&P 500 (US Large Cap) had 12 positive years and 1 negative years. That's a positive ratio of 92%.

αc Compound Portfolio Comb had a better yearly return 92% of the time compared to S&P 500 (US Large Cap).

Table

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2008 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
2009 -5.5% -1.3% 9.3% 13.5% 2.5% 4.4% 8.8% 4.3% 3.6% 0.6% 2.8% 4.7% 47.9%
2010 -0.9% 1.1% 7.7% 6.5% -4.6% -2.8% 1.2% -1.6% 10.2% 5.2% 4.6% 3% 29.5%
2011 6.2% 2.5% 1.4% 3.2% 0.9% -1.5% 1.9% -3.1% -8% 9.7% 1.3% -0.9% 15.2%
2012 11% 5.6% 5.2% -1% -3.6% 5.1% -1.4% 5.8% 3.9% -0.5% 3.2% 0.8% 33.8%
2013 10.3% 2.9% 5.1% 0.8% 3.1% 0.7% 5.3% 2.4% 7.8% 6.6% 5.8% 3% 53.2%
2014 -1% 3.2% 0.1% -1.9% 1.9% 1.2% -0.2% 5.5% -1.5% 6.8% 1.3% 0.6% 16.3%
2015 0% 6.2% -0.7% 1% 2.7% 0.2% 5.7% -2.5% -0.2% 8.7% 5.3% -1.6% 25.2%
2016 -6.9% -0.8% 5.9% -0% 6.5% 0% 6.4% 2.4% 1.4% -0% 6.2% 2% 23.2%
2017 0.6% 4% 2.8% 2.8% 4.2% -0.3% 7.1% 1.6% 6.5% 5.2% 0.2% 0.6% 35%
2018 8.4% 0.5% 2% 4.6% 8.8% 4.3% 2.1% 8.2% -1.3% -9.4% -2.3% -8.5% 17.1%
2019 10% 6.7% 2.9% 5.6% -4.7% 8.2% 5.8% 2.4% -2.3% 4.1% 5.2% 3.7% 47%
2020 5% -3.1% -4.7% 14.5% 13.5% 8.2% 12.1% -0.4% 0.9% 0.4% 2.5% 5% 56.8%
2021 -1.1% -0.4% 0.6% 5.5% -1.8% 4.5% 3.9% 0% 0% 0% 0% 0% 11.6%
Pos 61.5% 69.2% 84.6% 76.9% 69.2% 76.9% 84.6% 66.7% 58.3% 75% 91.7% 75% 100%
Avg 2.8% 2.1% 2.9% 4.2% 2.3% 2.5% 4.5% 2.1% 1.7% 3.1% 3% 1% 31.7%

Drawdown Periods

Simply said, a drawdown is the "pain" period experienced by an investor between a peak (new highs) and subsequent valley (a low point before moving higher). In the table below are the fifth largest drawdowns encountered for the portfolios/assets in question.

αc Compound Portfolio Comb

start valley end Drawdown days
2020-02-20 2020-03-16 2020-05-11 -28.53% 81
2018-09-05 2018-12-24 2019-04-25 -25.98% 232
2015-12-07 2016-02-11 2016-05-27 -15.89% 172
2011-07-08 2011-10-03 2012-01-09 -14.81% 185
2009-01-07 2009-03-09 2009-03-26 -14.17% 78

The αc Compound Portfolio Comb took approximately 5 months on average to recover from a major drawdown.

S&P 500 (US Large Cap)

start valley end Drawdown days
2020-02-20 2020-03-23 2020-08-10 -33.7% 172
2009-01-07 2009-03-09 2009-05-08 -27.13% 121
2018-09-21 2018-12-24 2019-04-12 -19.34% 203
2011-05-02 2011-10-03 2012-02-03 -18.61% 277
2010-04-26 2010-07-02 2010-11-04 -15.7% 192

The S&P 500 (US Large Cap) took approximately 6 months on average to recover from a major drawdown.

Underwater plot

The underwater plot shows you the drawdown periods on a chart. Whereas the performance chart usually gives you a positive viewpoint, the underwater plot gives you a pessimistic viewpoint. It helps you to visualize downtrends that occurred and how long it took for the portfolio's value to rebound to hit a new high after suffering a loss.