Thursday, 8 November 2007

My Portfolio: 1 Year return

So it's been exactly 1 year today since I began investing in the Australian stock market after a long absence from the investment market scene. No miraculous returns were made but all things considered I'm reasonably happy with the 45.3% return after brokerage costs and dividends.

As can be seen above, the portfolio consists of a measly 2 stocks. PWK has been a strong performer and has lived up to my expectations of it as an excellent business with great future growth prospects.

PBP met prospectus forecasts and the business seems to be doing well however the company experienced litigation problems earlier in the year which has put a lid on stock price appreciation.

Measured against the S&P/ASX All Ordinaries index my portfolio has outperformed the 21.1% return of the benchmark index over the same 12 month period.

Looking ahead I will continue to hold PWK as I believe the proposed Sydney to Guam pipeline has the potential to deliver significant shareholder value over the coming years.

PBP I continue to hold as I believe the business is poised for above average growth in 2008. Coupled with the ageing demographics of the Australian population and the fragmented nature of the markets PBP operates in, there is plenty of room for future growth beyond FY08. These growth opportunities more than offset the potential liability from the Phoscal litigation claim.

It has been an interesting year re-educating myself on the finer points of stock selection and the Australian and US economies. I intend to post more on stocks this year as well as the continued economic commentary and will look to add positions to my portfolio as opportunities arise.