My Value Investing - Supplement

I'm just complementing my previous related post.

Annualized TIR

That's my total annual return on stock market:

Annualized TIR	Portfolio	Ibov	Diff
Total Period - From 2005 to 2011	32,6%	13,0%	19,6%
Value Investing - From 2006 to 2011	34,5%	9,2%	25,3%

My Value Investing

I'm posting my results so far. I started investing in the stock market at the very end of 2004 and until beginning 2006 I was lost. So I stopped for a while to study more and I was very luck then to read Graham's Intelligent Investor.

The results are shown below. Of course, 7 years is not that much, but it's a clue that the methodology is working. The results show only the gains invested in stock, not for the whole personal equity. I usually invest 30-50% in stock market, except in the end of 2008, when peaked above 90%.

What the big guys are buying?

I'm having a free time these days so I finally had a time to build an excel function to automate reading CVM data.

The tables below shows what the best funds are buying (July 2011). This may be appropriate to get some insight to where looking for.

Investors Fees

Have you ever thought about how much investors have to pay to buy stocks?
I did a rough calculation after reading BVMF3 earnings release:

• Current dividends paid: with Fundamentus data, I multiplied current yield by market value to get all the dividends paid in 1 year.
• Costs with BM&f Bovespa was easily got in its earnings release.
• Brokerage commissions: here I had to make an assumption that one trade would cost, on average, BRL 15.00. That's because I can't get the total brokerage revenue, so I have to estimate it. Considering 83.9 millions of trades in spot market occurred in 2010, revenue would be 1.25 billions. I think that this amount is underestimated, because I'm not taking into account options, derivatives, term market, and so on.

Parisotto's Portfolio

Here goes the consolidated Parisotto's Portfolio as of June 2011:

Why he is buying TCSA3?

Lírio Parissoto

Let's see what that billionaire is investing on:

From www.cvm.gov.br, the portfolio owned by L. Par Fundo de Investimento em ações in jun / 2011 (the fund, owned by Lirio Parissoto, is worth more than 2.5 billion BRL):

Portfolio Reallocation

I'm doing some reallocations on my portfolio before pouring more money in.
Today, for example, I sold PTPA and TKNO, both with slight profits, to buy CSNA and BBDC.
I think it makes no sense now hold those positions when you can buy CSNA yielding 8% and BBDC with a P/E nearly 8.0.