Amateurinvestor beats S&P by 20 percentage points in 2019

For 2019, Amateurinvestor portfolio performance, average annualized return:

1 year: 51.6%

3 year: 33%

5 year: 25%

10 year: 22.3%

For comparison, the performance of the Vanguard 500 Index Fund Admiral (VFIAX), as proxy for the S&P 500 index, annualized return before taxes:

1 year: 31.46%

3 year: 15.23%

5 year 11.66%

10 year 13.52%

As of 12-31-2019, my holdings were, in the following proportions:

Microsoft (MSFT): 50.7%

Visa (V): 30.7%

Adobe (ADBE) 18.26%

Cash: 0.27%

How was this stellar return achieved?  over time, i have experimented in investing a small amount in other companies in an attempt to diversify in order to reduce risk. Over time, i have realized that there is no rational reason to divert funds away from the very few companies companies which provide the strongest durable competitive advantage, and have the research and development and business expertise and experience to profitably extend their competitive advantage to the evolving market.

my companies all provide services which are central and indispensable in the modern evolving and expanding digital economy.

 

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