We were going so well, and then November/December came. It is important to note that the way the NAPS portfolio was structured it was always going to be tough to outperform in a raging bull market, and so it proved to be the case this year.
But first as a final refresher, if you wish to revisit the launch blog post of the Australian and New Zealand NAPS portfolio from January, including the selection criteria, please read it here.
If you wish to re-read the 1st quarterly update you can do so here
If you wish to re-read the 2nd quarterly update you can do so here
If you wish to re-read the 3rd quarterly update you can do so here
The Australia and New Zealand NAPS (No Admin Portfolio System) is run as an education tool and is not intended to be taken as advice or a portfolio recommendation. As the name says, we perform absolutely no changes to our very rudimentary selection process, irrespective of how bad a stock may turn throughout the year. Next year we will be making a slight alteration to the selection process and we will inform you of that when we publish the next article. At this stage it is likely to be tomorrow sometime.
For now all we do within the portfolio is select the two highest StockRank scores at the start of the year, in each sector, large enough for us to consider.
This update is purely for the purposes of interest. True to word for the NAPS in 2023, we will not make any changes, irrespective of any shift in rankings (or personal biases). Rather, this is a shared learning exercise to see if a passive/stock specific fund can beat the market.
As mentioned in all quarterly reviews, we compare ourselves against the total return of the VAS Vanguard Australian Shares Index ETF as that is the closest way we can invest in the top 300.
Finally remember: Past performance is no indicator of future performance
General observation
Stockopedia is a tool, not a tip sheet. As is traditionally the case in raging bull markets, good, cheap and strong stocks, where the focus can only remain with a maximum in 2 sectors , will tend to underperform. Likewise this has been the…
