(Not) A good HYP return

Wider investment strategy discussions not dealt with elsewhere
1nv35t
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Posts: 267
Joined: November 4th, 2016, 8:18 pm

(Not) A good HYP return

Postby 1nv35t » January 1st, 2017, 8:23 pm

Berkshire Hathaway (BRK-B) is like a US conglomerate, low cost investment trust/ETF of sorts and in paying no dividends mitigates US 15% dividend withholding taxes (assuming a W8BEN has been registered).

Wesfarmers (WES.AX) is similar, for Australia. Most/all of dividends tend to be Franked dividends - so no Oz withholding tax applied.

FT250 is more representative of the UK than the FT100 (that has around 70% of earnings sourced from foreign business activities).

A equal blend of the three diversifies across US$, Australian$ and Pound (de-risks currency based inflation).

2016 Calendar year respective total returns (including dividends) 27.9%, 48.2%, 6.6% for a equal three way split average of 27.6%.

17.5% annualised since Jan 1988 (top-slice your own DIY dividends out of of the Total Return)

Code: Select all

1988   78.0%
1989   44.3%
1990   -33.2%
1991   49.4%
1992   40.7%
1993   43.4%
1994   4.7%
1995   26.7%
1996   6.6%
1997   26.0%
1998   19.1%
1999   9.0%
2000   22.6%
2001   30.9%
2002   -15.9%
2003   23.6%
2004   25.5%
2005   15.5%
2006   14.5%
2007   15.3%
2008   -29.5%
2009   51.8%
2010   26.4%
2011   -4.8%
2012   22.8%
2013   22.6%
2014   11.8%
2015   1.2%
2016   27.6%

Does of course have the idiosyncratic risk of BRK-B and WES.AX however

Both the US$ and AUS$ provided around 20% of those gains for 2016 i.e. Pound down relative to both https://s28.postimg.org/try4nj919/Screenshot_from_2017_01_01_20_14_18.png

Arborbridge
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Posts: 326
Joined: November 4th, 2016, 9:33 am

Re: A good HYP return

Postby Arborbridge » January 1st, 2017, 10:45 pm

Berkshire Hathaway (BRK-B) is like a US conglomerate, low cost investment trust/ETF of sorts and in paying no dividends mitigates US 15% dividend withholding taxes (assuming a W8BEN has been registered).


I can't imagine why you think this in on topic for the HYP practical board - or are you just being deliberately provocative?


Arb.

tjh290633
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Posts: 255
Joined: November 4th, 2016, 11:20 am

Re: (Not) A good HYP return

Postby tjh290633 » January 1st, 2017, 11:35 pm

Moderator Message:
Topic moved from HYP Practical board, being totally irrelevant to that board.


edited by Raptor for TJH 2.1.17

Gadge
Lemon Pip
Posts: 65
Joined: November 4th, 2016, 10:31 pm

Re: (Not) A good HYP return

Postby Gadge » January 2nd, 2017, 11:08 am

Interesting idea.

Overall returns look good but takes a big minus hit every so often eh?
Looks like that is a great time to buy in.

1nv35t
Lemon Slice
Posts: 267
Joined: November 4th, 2016, 8:18 pm

Re: (Not) A good HYP return

Postby 1nv35t » January 3rd, 2017, 4:13 pm

28.8% for 2016 calendar year Talmud comprised of London home (inc. imputed rent benefit), gold, BRK-B.

Respective yearly values for 1980 to 2016 inclusive

12.1%
18.4%
36.8%
35.1%
15.8%
21.1%
19.2%
1.5%
25.3%
39.8%
-22.9%
11.7%
23.1%
23.2%
6.5%
23.9%
-0.8%
14.5%
23.2%
4.6%
18.9%
11.1%
9.1%
8.4%
2.5%
17.1%
11.5%
24.5%
8.5%
6.2%
21.8%
6.4%
6.1%
7.0%
21.1%
1.0%
28.8%


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