Originally Posted by
Snoopy
How well have I done out of RBD? I have been a shareholder since the beginning, a long 13 years ago. However most of my purchases have been more recent. The median holding time for my holding is just 4 years. In those 4 years I have received a total of 23.5cps in dividends. A ‘buy and hold’ investor buying at that time would have paid $1.30 per share. But my average purchase price is $1.02. So my purchase timing, while not optimal, has been very advantageous.
My total return has been: (1.02+0.235)(i^4)=(2.31), where ‘i’ works out at 16% compounding.
Over that same time period the NZX50 has declined from 3700 to 3300. That represents a loss of:
3700(f^4)=3300, where ‘f’ works out as 0.97. This represents a compounding loss of 3% per annum.
Putting the two together I am looking at an overall outperformance of the NZX50 by 19% compounding per year every year for four years after tax.
SNOOPY