How did your portfolio fare this year?

If some of the stocks in your portfolio underperformed in 2019, there is no need to be alarmed. Do your year-end review to determine whether this is an aberration or a trend and take the appropriate action.

- Simon Brown

This year has been a good one for investors, with the US markets leading the way. The S&P 500 has returned over 20% and extended its decade-long bull run. Locally, our returns are not as impressive. But we have managed to get into double-digit returns – including with dividends – after many years of flat returns from the JSE.

Unless you’re holding an exchange-traded fund (ETF) issued over one of these markets, these are theoretical returns as they’re indices. So, if you run your own portfolio of individual stocks, your mileage may vary, and it may vary substantially.

Personally, my portfolio of individual stocks is a little behind the Top 40’s return and part of my yearend portfolio review needs to look into why I have underperformed and whether I should be worried.