Saturday, October 06, 2007

Monthly Review - September

This month's update was delayed for one very simple reason. When I first put all the numbers for September into my spreadsheet, the result was an unbelievable 6.1% increase in net worth for the month. In rather blunt terms, I assumed that I had made a mistake and moved a decimal place somewhere. After going through the numbers again, I was delighted to conclude that the original calculation was correct. Here's how it happened:

1. my residual share portfolio was up;

2. my funds were up strongly (they are heavily weighted towards emerging markets);

3. my tenants continued to pay the rent on time and the income from my properties was higher than the expense component of the outgoings (actually, one tenant missed a payment but has now caught up);

4. silver was up strongly;

5. currency movements were strongly in my favour. This was the single biggest contributor to the monthly change;

6. it was a strong month for income and my expenses were at the low end of expectations.

The year to date increase in net worth is a staggering 26.62%. While I appreciate that some the gains this month are very fickle (especially the effect of currency movements), this year's progress towards my retirement goal has been impressive.

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