It has been another fantastic year for our newsletter members! After outperforming the market by 22 percentage points in 2020, we managed to put down another solid performance in 2021. We didn't beat the market this time, but it had a lot of catching up to do. With a TWR of 19.4%, we finished only 2.8pp below the +22.2% achieved by the STOXX600.
At one point, we were almost 9 percentage points ahead due to some great outperformances by Reach and Marimekko, but we lost too much ground during the last four months of the year.
Since its inception, our portfolio had a time-weighted return (TWR) of +543%. During the same period, the STOXX600 moved up 95% and alpha was 448. The portfolio's compound annual growth rate (CAGR) was 17.6%. This is 11.6 percentage points higher than the STOXX600, which had a CAGR of 6%.
As you can see in the chart below, we picked a lot of winners over the years. Augean, La Doria, Staffline, Reply and Marimekko all had returns between 300 and 400% in only 2 to 4 years. BigBen Interactive, is now officially a 5-bagger, and it is still going strong.
That's the power of the reliable stock screener!