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| Speed by Patrik Nygren |
In my previous post "Reached 70k!" I mentioned that I’d broken 70k euros in my portfolio. I have set up a script that records the value of my portfolio every day so I decided to dig into my data a little bit.
I have previously not taken note of crossing these kind of milestones but I decided to do that in retrospect. I wanted to find out on which dates I have reached my previous 10ks. Here’s the data:
Portfolio value
|
1st occurrence
|
0
|
1.1.2011
|
10000
|
5.12.2011
|
20000
|
6.11.2012
|
30000
|
25.4.2013
|
30000 #2
|
2.5.2014
|
40000
|
3.11.2014
|
50000
|
22.1.2015
|
60000
|
4.11.2015
|
70000
|
27.5.2016
|
30k is listed twice because after I made it there the first time, I bought an apartment and took the down payment, around 10k euros from my portfolio. At that time in my life I also did some other purchases for the apartment. Getting back to 30k again took some time.
By the power of compounding, the accumulation of money should get faster. Did that happen? To some extent maybe yes but there’s not enough data to tell, really.
| Portfolio value | Days |
| 0 to 10k | 339 |
| 10k to 20k | 337 |
| 20k to 1st 30k | 170 |
| 1st 30k to 2nd 30k | 371 |
| 1st 30k to 40k | 541 |
| 2nd 30k to 40k | 185 |
| 40k to 50k | 80 |
| 50k to 60k | 286 |
| 60k to 70k | 205 |
The average addition of 10k took a little less than 250 calendar days (about 40 euros per day) but the data is quite sloppy. There's just too much variation to gain insights from these data, well, at least any extrapolation will be hard.
What jumps out from the data is 10k number 5, from 40k to 50k only took 80 days. Wowza! That was from the 3rd of November 2014 to the 22nd of January 2015. I tried to back track what had happened. The S&P 500 was basically flat during that time while the Finnish OMXH was up about 3.5%. I checked my contributions to the portfolio from that period and they were around 5k so another 5k came from my holdings.
During that time I was holding a bunch of American equity ETFs and the EUR/USD exchange rate went from 1.250 on 16th of December to 1.147 on 22nd of January. This seemed to be magic ticket. Actually the next day, 23rd of January it was already at 1.1234 and my portfolio had made another 1000 euros. Unfortunately I can’t take credit for an exchange rate change and even more unfortunately it will also fluctuate in the other directions as times go by.
