One of the joys between Christmas and New Year is the time it brings us all. After all the mess of gift giving and receiving is over and relatives have left… there’s a moment where you realise you’ve finally some time for yourself. It’s in these gaps that we have moments for reflection, to make new resolutions, to read, to ponder… or just lie around and eat a pot of honey. I found myself nostalgically reading “The Tao of Pooh” and reflecting on some of the things I’ve got wrong in 2021 – namely trying to do when not doing would have done just fine. On reflection, the NAPS embodies a number of taoist principles, and it’s in this vein that I’ll review what’s been another good year.
NAPS Portfolio Performance 2021
The NAPS Portfolio appreciated by 28.3% through 2021 (excluding dividends & transaction costs) versus the FTSE All Share at 14.5% (18.6% including dividends). In spite of a reversal from the 39% high on September 1st, it has been a remarkably strong showing in a year when so many portfolios have suffered.
The Long Run Performance
For those that need reminded, the NAPS is my “no-admin-portfolio-system”. A 20 stock portfolio from the highest StockRank stocks, diversified fairly equally across all 10 sectors, rebalanced annually. It’s a “select once, leave for a year portfolio” that requires no more than an hour to put together, but has performed remarkably well over the last 7 years. With more than an 18% annualised return over this period, £1 would have grown into ~£3.23 following this process in a tax efficient wrapper.
Please note that the above performance excludes dividends for both NAPS and FTSE All Share. The FTAS has a 49% total return (including dividends) over the same timeframe. I prefer to exclude the impact of dividends from NAPS performance tracking as it is a conservative way of factoring in transaction costs.
If you’d like to learn more about the NAPS – you can catch up on all the articles in the blog archive here. There are also some videos on Youtube which I keep promising to update and will do soon.
Winners and Losers 2021
While Reach (LON:RCH) couldn’t hang onto all of its gains this year, it still…