All You Need to Know About My Real Portfolio on the WSE – Summary After 4 Years

4 years of investing on the Warsaw Stock Exchange

Time flies quickly. I remember publishing a post about the results of 3.5 years of investing and now we have another half a year in my investing history. Let’s have a look at those 4 years. My real wallet on the Warsaw Stock Exchange gained +120.57%, which gives +21.87% annually.

The first year 05.2013-04.2014 ended up with a result +22.39%

The second year 05.2014-04.2015 ended up with a result +19.49%

The third year 05.2015-04.2016 ended up with a result +12.29%

The fourth year 05.2016-04.2017 ended up with a result +34.90%

Comparisons of the performance with the benchmarks

In the chart below you can see the performance of the WSE wallet, bank deposits and the benchmarks for the Warsaw Stock Exchange Index WIG and Index WIG20.

The effect of the inflation on the investments

Why do I include inflation in my calculation?

Inflation reduces the purchasing power. So let’s have a look at the fourth year of my investing. During this time the interest rate on deposits of up to 2 years was 1.46%. At the same time, the inflation rate was 1.61%. It means that an average deposit made you loose 1.46%-1.61%=-0.15%. Or, in the other words, your return on investment was reduced by 1.61% in this year.

It is worth having in mind this principle because after years of worrying about deflation, in 2017 the inflation came up both in Europe and the USA.

Posted in The Warsaw Stock Exchange Freedom Portfolio and tagged , , , .

Leave a Reply

Your email address will not be published. Required fields are marked *