I used to follow Canadian Capitalist's Sleepy portfolio, but haven't heard much about it lately.
A personalized benchmark, as Preet suggested, is probably best. But like all investors I'm hoping for absolute positive returns so sometimes a benchmark just won't cut it.Against what basket of goods do you value your portfolio? The S&P 500? T-Bills? Cheers!
As you can see in my sig, over the last 10 years we've been benchmarking the performance of our non-registered account against the S&P500.I'm wondering what people include in their benchmark portfolio. I mean the portfolio you watch as the metric against which you judge your total investments.
I already watch a number of key indexes over time (North American, European, China, and S.E. Asia mostly; differentially applicable), but I wonder what the practice and the insight is.
Against what basket of goods do you value your portfolio? The S&P 500? T-Bills?
My perspective is you would put RIM against the TSX since thats what you are attempting to beat. If you're buying individual stocks then you think they will do better then the index as a whole so you should compare it against the index. But I would think its personal preference on how you want to track your performance.Has anyone ever wondered why country-weighted benchmarks are so much more popular than sector-weighted benchmarks? I can understand this works well for Americans since S&P 500 is already diversified, but what about in Canada?
Hypothetically should a diversified individual stock investor (100% in Canada) benchmark his stocks against the TSX even if assuming TSX is 80% resource? Or, should he benchmark against S&P 500 due to the similar sector allocation? Or, half and half?
When someone is considering Research In Motion as an investment, what is he comparing RIM with? Other TSX stocks like Encana, or direct competitors like Apple and Nokia?