VSG Premium portfolio outperformed most major stock market indices in 2018. Probably all broad indices lost to VSG in 2018.
If you were a member for the full year, you largely avoided the 2018 market meltdown, as we strategically increased our exposure to cash and treasuries in the beginning of the year and strengthened our risk management processes.
It was interesting to watch the market and the investors get giddy over stocks for pretty much most of the year. The party, apparently, was not to stop. However, as has been the case ever since people have traded assets for money, asset prices correct when they diverge too much from the valuations.
This has been happening now. It will continue to happen in 2019 for some time.
See also: what are warrants
The trigger can be anything – tariffs, Saudi Arabia, softening oil prices, some random event somewhere – but the underlying reason for the correction remains the unsustainable valuations.
Read: how do stocks work
Here are the performance details:
|INDEX NAME||2018 Total Return|
|Russell 3000 Growth||-2.12%|
|Russell 3000 Value||-8.58%|
|Russell 1000 Growth||-1.51%|
|Russell 1000 Value||-8.27%|
|Russell 2000 Growth||-9.31%|
|Russell 2000 Value||-12.86%|
|Russell Top 200||-3.08%|
|Russell Top 500||-4.30%|
|Russell Top 50 Mega Cap||-2.98%|
All returns are Total Returns. They include the dividends. VSG returns include the commission expenses, while index returns assume 0 commission expenses.
Learn more: definition of net book value
Since inception (July 23, 2009), VSG Premium portfolio has returned 252.40% compared to S&P500 (204.30%), Russell 2000 (155.51%) and BRKA (227.27%). This means, a 100K portfolio at the inception would be worth $352K with VSG Premium. It would be worth $48K less in an S&P 500 index fund, $97K less in a small cap index fund following Russell 2000, and $25K less if it was invested in the Berkshire Hathaway stock.
You could also inquire about VSG Premium membership here
Want to be a Successful Value Investor?
Learn what actually works in the market.
Get the 26 real world investments that made millions for Value Stock Guide Premium members.